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Suppose that you build a portfolio that consists of a riskless asset with return 4% and a risky asset. Your portfolio weight in the riskless
Suppose that you build a portfolio that consists of a riskless asset with return 4% and a risky asset. Your portfolio weight in the riskless asset is 45% and the expected return of your portfolio is 13%. What is the expected return of the risky asset? A. 20.4% B. 24.1% C. 11.3% D. 14.9%
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