Question: Continue from the previous question. Consider the following information: Probability of the Rate of return if state occurs state of economy Stock 1 Stock 2

Continue from the previous question. Consider the following information: Probability of

Continue from the previous question. Consider the following information: Probability of the Rate of return if state occurs state of economy Stock 1 Stock 2 Recession 0.2 4% 4% Boom 0.8 1% 4% Calculate the standard deviation of a return on a Portfolio1 invested 40% in Stock 1 and 60% in Stock 2. Express your answer as%

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