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Lindsay Brown owns a risky portfolio with a 15% expected return. The riskfree return is 5%. What is the expected return on Lindsay's total portfolio
Lindsay Brown owns a risky portfolio with a 15% expected return. The riskfree return is 5%. What is the expected return on Lindsay's total portfolio if Lindsay invests the following proportions in the risky portfolio and the remainder in the risk-free asset?
a. 120%
b.90%
c.75%
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