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An investor wishes to construct a portfolio by borrowing 35 percent of his original wealth and investing all the money in a stock index. The

An investor wishes to construct a portfolio by borrowing 35 percent of his original wealth and investing all the money in a stock index. The return on the risk-free asset is 4.0 percent, and the expected return on the stock index is 15 percent. Calculate the expected return on the portfolio.

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