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An investor forms a portfolio comprised of Stock A and Stock B. Stock A has an expected return of 2% while Stock B has an
An investor forms a portfolio comprised of Stock A and Stock B. Stock A has an expected return of 2% while Stock B has an expected return of -1%. If the investors splits her money equaly across the two stocks (i.e. 50-50 weights) what would be the expected return of her portfolio? A. 0.5% B. -1% C. 0% D. 1%
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