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a. What are the payoffs of a portfolio of one share of security A and one share of security B? b. What is the market
a. What are the payoffs of a portfolio of one share of security A and one share of security B? b. What is the market price of this portfolio? What expected return will you earn from holding this portfolio? a. What are the payoffs of a portfolio of one share of security A and one share of security B? (Select the best ch A. Portfolio A + B pays $9 in both cases (i.e., it is risk free). B. Portfolio A+B pays $618 in both cases (i.e., it is risk free). C. Portfolio A + B pays $573 in both cases (i.e., it is risk free). D. Cannot be determined without the discount rate. b. What is the market price of this portfolio? The market price of this portfolio will be $. (Round to the nearest dollar.) What expected return will you earn from holding this portfolio? The expected return is \%. (Round to two decimal places.)
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