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Question 1 Suppose the following two stocks exist, where R is the excess return: Stock E(R) o A 14% 26% B 18% 35% 0.3 and

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Question 1 Suppose the following two stocks exist, where R is the excess return: Stock E(R) o A 14% 26% B 18% 35% 0.3 and rf (a) (4 pts) If p 4%, what are the weights of the optimal portfolio containing these two securities? (b) (2 pts) What is the expected return, E(r), on your portfolio

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