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Calculate the Return on an Optimal Portfolio Where the Return 2% 2 \%

Question 36

Multiple Choice

Calculate the return on an optimal portfolio where the return on the risky asset is 5%,the return on the risk-free asset is 4%,and where the investor invests has a weight of 75% in the risky asset.


A) 2% 2 \%
B) 3.50% 3.50 \%
C) 4.75% 4.75 \%
D) 5.25% 5.25 \%

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