Question: Ameena is considering two securities, A and B with two different scenarios (black. and white), given the information below: Probability Return on Security A (%)
Ameena is considering two securities, A and B with two different scenarios (black. and white), given the information below:
| Probability | Return on Security A (%) | Return on Security B (%) | |
| Black | 0.6 | 3.0% | 6.5% |
| White | 0.4 | 15.0% | 6.5% |
| Suppose Ameena invested $2,500 in Security A and $3,500 in security B. Calculate the expected return of her portfolio. | |
Calculate the standard deviation of each security?
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