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Lance Company (LC) and Cruz Company (CC) are both service companies. Their stock returns for the past three years were as follows: FC: -5 percent,
Lance Company (LC) and Cruz Company (CC) are both service companies. Their stock returns for the past three years were as follows: FC: -5 percent, 15 percent, 20 percent; MC: 8 percent, 8 percent, 20 percent. If FC and MC are combined into a portfolio with 50 percent of the funds invested in each stock, calculate the expected return on the portfolio.
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