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Stock A Stock B Expected return 0.20 0.14 Standard deviation 0.232 0.136 The correlation coefficient between the two stocks is 0.45 John Smith has $100,000

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Stock A Stock B Expected return 0.20 0.14 Standard deviation 0.232 0.136 The correlation coefficient between the two stocks is 0.45 John Smith has $100,000 to invest. He puts $10,000 in Stock A, 340,000 in Stock B, and borrows $30.000 from a bank at 2% to make the investment. What is the portfolio expected return? a. 0.20 b. 0.21 c. 0.22 d. 0.23

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