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An investor is considering two securities:o Security A: expected returns, 1 2 % , SD = 5 % , o Security B: expected returns =

An investor is considering two securities:o Security A: expected returns, 12%, SD =5%,o Security B: expected returns =18%, SD =9%,CovA, B)=0.3Risk-free security: Returns =6%.What is the expected return and volatility of a portfolio with 60% in A and the remainder in B?What combination of the risk-free and security A will yield the returns of Security B? What is the volatility of this portfolio?

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