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Calculate the standard deviation of portfolios invested

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E(r) on T-bills is 5% and the same on the composite index is 9.24% and the standard deviation of the composite index is 17.42%. Calculate the expected return and use your findings to calculate the standard deviation of portfolios invested in T-bills and the composite index with weights as follows:

W (Bills)

W (Market)

0.4

0.6

Provide your answer for the standard deviation as a percentage, rounded to 2 decimal places.

Reference no: EM132589590

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