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2. Portfolios B. You plan to create a portfolio by investing a fraction of your money w in Jynx and Co. (a risky asset) and

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2. Portfolios B. You plan to create a portfolio by investing a fraction of your money w in Jynx and Co. (a risky asset) and the remainder in the risk-free asset. Jynx and Co. has an expected return of E(r) 10% and a volatility of o = 15%. The risk-free asset has a constant return of 3%. What is the expected return and volatility of your portfolio if you were to use the following weights: (a) w = 0 (b) w = 0.5 (c) 1 (d) w= 1.5 w

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