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REVISION QUESTION 4 a) What is the standard deviation of the returns on a stock...

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REVISION QUESTION 4 a) What is the standard deviation of the returns on a stock given the following information? State of Probability of Rate of Return Economy State of Economy if State Occurs Boom 18% 19% Normal 76% 12% Recession 6% -15% b) A portfolio beta is a weighted average of the betas of the individual securities which comprise the portfolio. However, the standard deviation is not a weighted average of the standard deviations of the individual securities which comprise the portfolio. Explain why

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