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D) 5.81% 18) Your portfolio only has two stocks. You invest 500,000 on stock A and 300,000 on stock B. Following is the information about

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D) 5.81% 18) Your portfolio only has two stocks. You invest 500,000 on stock A and 300,000 on stock B. Following is the information about the market and stocks. What is the required rate of the return on this portfolio? (Hint: S&cP 500 index is a well-diversified market portfolio) Risk free rate 2% 8% 10% S&P index return Standard Deivation of Stock A Standard Deivation of Stock B | 15% Standard Deviation of S&P index 996 | Correlation between Stock A's return and S&P 500 return 0.65 Correlation between Stock B's return and S&P 500 return 0.50 A) 5.01% B) 657% C) 754% D) 8.81% Using the following information for Question 19 and 20

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