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Suppose You Have Invested 25% of Your Portfolio in Four

question 43

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Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are as shown below. The correlations between the annual returns on the four stocks are also shown below. Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are as shown below. The correlations between the annual returns on the four stocks are also shown below.   -What is the probability that your portfolio will lose money during the course of a year?
-What is the probability that your portfolio will lose money during the course of a year?


Definitions:

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