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Mr Ashik's, portfolio manager of Lanka Bangla Investment Company, has created a diversified portfolio using the following stocks. Mr Ashik's risk aversion score is 4.
Mr Ashik's, portfolio manager of Lanka Bangla Investment Company, has created a diversified portfolio using the following stocks. Mr Ashik's risk aversion score is 4. Currently a 3-months Treasury bill offers 6% but he does not have any investment in risk free asset. Expected return and standard deviation of each stock are given below: Stock Market Value (Million BDT) E(R;) (%) Standard Portfolio Variance Deviation o1(%) 102) Beximco 15,000 14 5 BSCCL 17,000 -4 00 8 Square Pharma 32,000 18 140 2.85% ADNTEL 23,000 16 13 Hakkani Pulp 7,000 12 15% Based on the above information calculate the expected return of Mr Ashik's portfolio
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