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Stock A has an expected return of 16 percent, and stock B has an expected return of 8 percent. However, the risk of stock A
Stock A has an expected return of 16 percent, and stock B has an expected return of 8 percent. However, the risk of stock A as measured by its variance is 3.2 times that of stock B. If the two stocks are combined equally in a portfolio, what would be the portfolio's expected return? Group of answer choices 11.50% 9.50% 12.00% 8.25% 14.10%
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