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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
- 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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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
