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Consider the following two investment alternatives. First, a risky asset that has a 1 2 % expected rate of return with a portfolio weight of
Consider the following two investment alternatives. First, a risky asset that has a
expected rate of return with a portfolio weight of Second, a Treasury bond that has
an expected rate of return of If you invest $ in this portfolio made up of this
risky asset and the Treasury bond, your expected profit would be $
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