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    Your portfolio allocates equal amounts to three stocks

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    Your portfolio allocates equal amounts to three stocks. All three stocks have the same mean annual return of 16%. Annual return standard deviations for these three stocks are 30%, 40%, and 50%. 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 1%?

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    https://brainmass.com/economics/finance/portfolio-allocates-equal-amounts-three-stocks-474473

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    This solution provides a detailed, step-by-step explanation of the given finance problem.

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