Return on Asset D in State Return on Asset E in State Return on Asset F in State Boom 0.35 0.060 0.310 0.25 Normal 0.50 0.060 0.180 0.20 Recession 0.15 0.060 -0.210 0.10 1. Calculate the standard deviation for each security.

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A: State A B Probability Normal  25% 13% 40% Recession 8% 9% 60%         Weight 60% 40%

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