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Suppose You Invest Equal Amounts in a Portfolio with an Expected

Question 72

Multiple Choice

Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%.Calculate the expected return on the resulting portfolio.


A) 10%
B) 4%
C) 12%
D) 9%

Correct Answer:

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