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A Bank currently offers traditional banking services, from which they generate an average return of 7% while bearing a risk ( ) of 2%. They
A Bank currently offers traditional banking services, from which they generate an average return of 7% while bearing a risk ( ) of 2%. They are planning to allocate 45% of their activity to nontraditional services from which they expect an average return of 11% while bearing a risk () of 6%. The correlation ( p ) between traditional and non-traditional revenues is -0.7 . What would be the expected return of this portfolio of " 2 assets"? Type your answer as percentage and not as decimal (i.e. 5.2 and not 0.052). Round your solution to the nearest three decimals if needed. Do not type the \% symbol
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