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If you are holding a portfolio invested 60% in stock SSS and 40% in market portfolio and the expected return of this portfolio is 10%.
If you are holding a portfolio invested 60% in stock SSS and 40% in market portfolio and the expected return of this portfolio is 10%. What must be the rate of return on market portfolio? Express your answer as a %.
Consider the same info as before: Probability of the Rate of return if state state of occurs economy Stock SSS Recession 0.1 0 % Normal 0.5 7 % Boom 0.4 6%Step by Step Solution
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