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A portfolio consists of a risk-free asset and a risky asset. The risk-free asset has a return of 2% and a portfolio weight of 20%.

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A portfolio consists of a risk-free asset and a risky asset. The risk-free asset has a return of 2% and a portfolio weight of 20%. The risky asset has a return standard deviation of 8%, a beta of 1.2, and a portfolio weight of 80%. The expected market return is 6%. What is the expected return of the portfolio? OA) 3.84% OB) 5.84% C) 4.80% OD) 7.76%

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