What is the standard deviation of a portfolio

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Stock A will return 15 percent in a normal economy and lose 14 percent in a recession. Stock B deals with inferior goods and will return 7 percent in a normal economy and 18 percent in a recession. There is a 20 percent chance of a recession occurring. What is the standard deviation of a portfolio that is equally weighted between the two stocks? 3.60% 3.90% 6.50% 7.60%

Reference no: EM131078003

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