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Bryson would like a portfolio that offers twice the expected return on the market. His two investment options are Stock C and Stock D. Stock
Bryson would like a portfolio that offers twice the expected return on the market. His two investment options are Stock C and Stock D. Stock C has an expected return of 13.5% and Stock D has an expected return of 27.2%. If the risk-free rate is 4% and the market risk premium (expected market return minus risk-free rate) is 7.5%, what percentage of his portfolio should Bryson invest in each stock?
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