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Charlie has a portfolio that has 4 0 % of its funds invested in Security A , 5 0 % of its funds invested in

Charlie has a portfolio that has 40% of its funds invested in Security A,50% of its funds invested in Security B, and 10% invested in the risk-free asset. The risk-free asset earns 4.5%. Security A has an expected return of 8% and a standard deviation of 16%. Security B has an expected return of 10% and a standard deviation of 24%. Securities A and B have a coefficient of correlation of 0.50. What is the expected return of the portfolio?

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