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Question 62. Consider a portfolio that consists of an equal investment in 20 firms. For...

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Finance

Question 62. Consider a portfolio that consists of an equal investment in 20 firms. For each of these firms, there is a 70% probability that the firms will have a 16% return and a 30% probability that they will have a -8% return. Each of these firms is independent of all others. The standard deviation of this portfolio is closest to: A. 2.5% B. 4.2% C. 8.8% D. 11.0% E. 12%

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