Question: You will use the following information to answer 5 different questions (I will repeat it again, but it is the same information). You own a
You will use the following information to answer 5 different questions (I will repeat it again, but it is the same information). You own a portfolio that is invested 50% in stock A and 50% in stock B. Given the following information on the returns of stocks A and B under the different states of economy, what is the standard deviation of the portfolio?
| State of the Economy | Probability | Stock A (Return) | Stock B (Return) |
| Good | 0.5 | 20% | 0% |
| Bad | 0.5 | -10% | 10% |
Question 33 options:
| 2.5% | |
| 0% | |
| 10% | |
| 5% |
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