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Stock A has an expected return of 12% and a standard deviation of its return equal to 23%. Stock Bs return has a standard deviation
Stock A has an expected return of 12% and a standard deviation of its return equal to 23%. Stock Bs return has a standard deviation of 34%. The two stocks returns are perfectly positively correlated. You invested all your wealth in a portfolio containing only these two stocks. This portfolio has a standard deviation equal to 32.68% and its expected return is 7.60%. What is the expected return of Stock B?
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