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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: 18%, Bonds: 17%, and the rest is Stocks. The expected returns of the assets in the retirement portfolio: Expected Asset Return (E(R)) Cash 3.07% Bond 4.63% Stock 10.98% 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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