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Question 3: ( 8 marks) A market consists of just two stocks, A and B. Stock A has expected return 5% and risk 10%. Stock

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Question 3: ( 8 marks) A market consists of just two stocks, A and B. Stock A has expected return 5% and risk 10%. Stock B has expected return 15% and risk 20%. The returns of the two stocks are independent. A client wants a portfolio with a certain risk, , and it turns out that there is exactly one possible portfolio which has this risk. Find the average return of this portfolio and the value of

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