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The following information for Stock A, Stock B and Stock C are given: ...

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Finance

The following information for Stock A, Stock B and Stock C are given:

State of Economy

Probability of State

Stock A Return

Stock B Return

Boom

0.20

0.30

0.20

Good

0.35

0.20

0.10

Poor

0.45

-0.20

-0.05

Variance(Stock C)=0.12

Covariance(Stock A, Stock C)=0.020

Covariance(Stock B, Stock C)=0.009

If you form a portfolio and invest 25% of your money into Stock A, 35% into Stock B and, 40% of it into Stock C, what will be the standard deviation of the portfolio? (Answer is rounded)

0.136

0.169

0.117

0.184

0.207

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