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Your portfolio allocates equal amounts to three stocks. All three stocks have the same mean annual return of 11 percent. Annual return standard deviations for these three stocks are 26 percent, 36 percent, and 46 percent. The return correlations among all three stocks are zero. What is the smallest expected loss for your portfolio in the coming year with a probability of 2.5 percent?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91586020

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