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You have the following information on a portfolio. You put 40% of your money in A and 60% in B. Find the expected return and
You have the following information on a portfolio. You put 40% of your money in A and 60% in B. Find the expected return and standard deviation on your portfolio.
Economy | Probability | Return on A | Return on B |
State 1 (Bust) | 0.50 | 2% | -10% |
State 2 (Boom) | 0.50 | 8% | 40% |
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