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Suppose that you have the following two opportunities from which to construct a complete portfolio: risk-free asset earning 2%, and a risky asset with expected

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Suppose that you have the following two opportunities from which to construct a complete portfolio: risk-free asset earning 2%, and a risky asset with expected return of 12% and standard deviation of 20%. If you construct a complete portfolio that has standard deviation of 12%, what is its expected return? a) 5% b) 8% c) 7% d) 6%

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