Stock ABC will have a loss of 15 percent in a recession, a return of...
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Stock ABC will have a loss of 15 percent in a recession, a return of 12 percent in a normal economy, and a return of 25 percent in a boom Stock XYZ will have a loss of 10 percent in a recession, a return of 10 percent in a normal economy, and a return of 30 percent in a boom There is 30 percent probability of a recession, 40 percent probability of normal economy, and 30 percent probability of boom. If you form portfolio by investing half your money in stock ABC and the rest in stock XYZ, what would be the standard deviation of the portfollo's returns? ET a. 17,65% b. 19.57% oc None of the answer is correct Od 12.69% e. 15.59%
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