Question: 8 - 9: Please use the following information. You decide to invest in a portfolio consisting of 20 percent Stock A, 47 percent Stock B,

8 - 9: Please use the following information. You decide to invest in a portfolio consisting of 20 percent Stock A, 47 percent Stock B, and the remainder in Stock C. State of Economy Probability of State of Economy Recession Normal Boom 0.124 0.685 0.191 Return if State Occurs Stock A Stock B Stock C - 11.10% -4.50% -13.50% 10.40% 10.86% 17.90% 21.75% 25.51% 30.21% I 8. Based on the above information, what is the standard deviation of your portfolio? a. 0.0963 b. 0.01048 c. 0.00973 d. 0.00927

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