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Stock A has an expected return of 20%, and stock B has an expected return of 10%. However, the risk of stock A as measured
Stock A has an expected return of 20%, and stock B has an expected return of 10%. However, the risk of stock A as measured by its variance is 3 times that of stock B. If the two stocks are not perfectly correlated and combined equally in a portfolio, what would be the portfolio's expected return? 15% 18% diversification reduces risk and the return is greater than 20%. Need more information to
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