Question: Question 21 6.5 pts Consider the following probability distribution for stocks A and B: Returns if State Occurs State of Economy Probability of State of

Question 21 6.5 pts Consider the following probability distribution for stocks

Question 21 6.5 pts Consider the following probability distribution for stocks A and B: Returns if State Occurs State of Economy Probability of State of Economy Stock A Stock B Boom 30% 15% 30% Normal 70% 6% - 10% If you invest 40% of your money in A and 60% in B, what is the standard deviation on your portfolio? 14.68% 15.99% 9.56% 11.48 percent 12.65%

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