What is the standard deviation of the return on asset

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Reference no: EM132844576

Question - The returns of two assets under four possible states of nature are given below:

State of nature

Probability

Return on asset 1

Return on asset 2

1

0.30

10%

5%

2

0.10

12%

10%

3

0.20

15%

20%

4

0.40

16%

22%

Required - What is the standard deviation of the return on asset 1 and on asset 2?

Reference no: EM132844576

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