There are only two possible states of the economy.State 1 has a 47% chance of occurring.In State

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There are only two possible states of the economy.State 1 has a 47% chance of occurring.In State 1, Asset A returns 9.00% and Asset B returns 12.00%.In State 2, Asset A returns -4.60% and Asset B returns -7.60%.A portfolio of just these two assets is invested 63% in Asset A (with Asset B comprising the remainder without any negative weights).What is the standard deviation of the portfolio's returns?

Question 26 options:

7.70%

7.90%

8.09%

8.29%

8.49%

Posted Date: May 17, 2024 04:00 AM

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There are only two possible states of the economy.State 1 has a 47% chance of occurring.In State

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