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    Exam 7: Risk,return,and the Capital Asset Pricing Model
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    A Portfolio Consists 20% of a Risk-Free Asset and 80
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A Portfolio Consists 20% of a Risk-Free Asset and 80

Question 53

Question 53

Multiple Choice

A portfolio consists 20% of a risk-free asset and 80% of a stock.The risk-free return is 4%.The stock has an expected return of 15% and a standard deviation of 30%.What's the expected return


A) 12.8%
B) 9.5%
C) 15.0%
D) 4.0%

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