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Problem 1. Computing expected returns on a multiple-stock portfolio A portfolio consists of three stocks A, B, and C. When the portfolio is formed, 40%
Problem 1. Computing expected returns on a multiple-stock portfolio A portfolio consists of three stocks A, B, and C. When the portfolio is formed, 40% is invested in stock A, 30% in stock B, and 30% in stock C. Over the next year, expected return on stock A is 8%, on B is 5%, and on C is 12%. Compute expected return on the portfolio
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