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Assume that the risk-free rate is 2%. The optimal risky portfolio has an expected return of 10% with a standard deviation of 15%. You invest
Assume that the risk-free rate is 2%. The optimal risky portfolio has an expected return of 10% with a standard deviation of 15%. You invest 90% in the risky portfolio, with the remainder in the risk-free rate. What is the expected return for the complete portfolio?
Group of answer choices
2%
10%
7.4%
9.2%
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