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Portfolio P consists of Stock X and Stock Y. Stock X weight is 70%. Stock X expected return is 14%, Stock Y expected return is

Portfolio P consists of Stock X and Stock Y. Stock X weight is 70%. Stock X expected return is 14%, Stock Y expected return is 10%. Stock X standard deviation of return is 3%, Stock Y standard deviation of return is 1%. Correlation of Stock X and Stock Y returns is -0.46. Expected portfolio P return is:

6.91%

8.50%

12.80%

13.26%

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