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As an investor, you saw an opportunity to invest in a new security with expected rate of return of 20%. Wanting to invest more than
As an investor, you saw an opportunity to invest in a new security with expected rate of return of 20%. Wanting to invest more than you had, you sold another security short with an expected rate of return of 6%. The total amount you sold short was $2,000, and your total amount invested in the new security was $16,000. What is your expected rate of return on this portfolio? (Please keep your answer to 4 decimal places, e.g. 0.1234)
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