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b) Noella Simpson created a riskless portfolio by investing 60% in Stock P and 40% in Stock Q. Outcome Probability stock P Stock Q A
b) Noella Simpson created a riskless portfolio by investing 60% in Stock P and 40% in Stock Q.
Outcome Probability stock P Stock Q
A 0.2 20% - 8%
B 0.8 5% ??
Required:
What is the return of Stock Q under Outcome B?
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