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Consider a portfolio consisting of the following three stocks Koza, Eregli and Turkcell: Stocks Portfolio weight Volatility Correlation with the market portfolio Koza 0.25 12%
Consider a portfolio consisting of the following three stocks Koza, Eregli and Turkcell: Stocks Portfolio weight Volatility Correlation with the market portfolio Koza 0.25 12% 0.30 Eregli 0.16 15% 0.25 Turkcell 0.59 20% 0.54 The volatility of the market portfolio is 9% and it has an expected return of 10%. The risk-free rate is 5%. What is the expected return of the portfolio?
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