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1.You are creating a portfolio of two stocks. The first one has an expected return of 20% and the second one has an expected return
1.You are creating a portfolio of two stocks. The first one has an expected return of 20% and the second one has an expected return of 50%. The correlation coefficient between the returns of the two is 0.2. You will invest 70% of the portfolio in the first stock and the rest in the second stock. What will be the portfolio's expected return?
2.
If the Treynor ratio of Stock X is 6.5%, the stocks expected return is 15.2%, and its beta is 1.4, then what is the risk-free rate?
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