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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