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Monet plc has an expected return of 20%, and Manet plc has an expected return of 6%. The risk of Monet as measured by the

  1. Monet plc has an expected return of 20%, and Manet plc has an expected return of 6%. The risk of Monet as measured by the standard deviation of the returns is three times that of Manet. If the two stocks are combined equally in a portfolio, what would be the expected return of the portfolio?

A. 13%

B. 14%

C. 26%

D. Need more information to answer

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