What is the standard deviation of a potfolio with 80 of the
State probablity Return on A Return on B
Boom .20 20% 5%
Normal .50 10% 8%
Bust .30 8% 12%
What is the standard deviation of a potfolio with 80% of the funds invested in A?
3.3, 3.5,3.7,3.1 or 3.9
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