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A hedge fund manager decides to construct a portfolio by borrowing 10% of his original wealth at the risk-free rate and investing in a stock

A hedge fund manager decides to construct a portfolio by borrowing 10% of his original wealth at the risk-free rate and investing in a stock index. The return on the risk-free asset is 2% and the expected return on the stock index is 11%. Calculate the expected return on the portfolio. Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX: .XXXX)

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