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Different investor weights. Two risky portfolios exist for investing: one is a bond portfolio with a beta of 0.6 and an expected return of 8.4%,
Different investor weights. Two risky portfolios exist for investing: one is a bond portfolio with a beta of 0.6 and an expected return of 8.4%, and the other is an equity portfolio with a beta of 1.2 and an expected return of 15.3%. If these portfolios are the only two available assets for investing, what combination of these two a. Bart: desired expected return 14% b. Lisa: desired expected return 12% c. Maggie: desired expected return 10% a. The combination of these two assets that will give Bart an expected return of 14% is \% in bonds and % in stocks. (Round both answers to two decimal places.)
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