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An investor has a retirement portfolio comprised of 3 assets: cash, bonds and stocks. The asset allocation (weights) of the retirement portfolio is as follows:
An investor has a retirement portfolio comprised of 3 assets: cash, bonds and stocks.
The asset allocation (weights) of the retirement portfolio is as follows: Cash: 13%, Bonds: 12%, and the rest is Stocks.
The expected returns of the assets in the retirement portfolio:
Asset | Expected Return (E(R)) |
Cash | 2.35% |
Bond | 4.84% |
Stock | 8.77% |
What is the expected return for this portfolio?
Enter the answer as a decimal (with 2 decimal places). For example 8% = 0.08.
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