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Question
a portfolio consists of the following stocks:
stock expected return
a 15%
b 10
c 22
d 14
a. what is the expected return on a portfolio consisting of an equal amount invested in each stock?
b. what is the expected return on the portfolio if 50 percent of the funds are invested in stock c, 30 percent in stock a, and 20 percent in stock d?
Answer
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