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Suppose the stock market in the US has an expected return of 6%, and a standard deviation of expected return of 8%. The stock market
Suppose the stock market in the US has an expected return of 6%, and a standard deviation of expected return of 8%. The stock market in Germany has an expected return of 16% and a standard deviation of expected return of 10%. Assume you have a portfolio with 60% invested in the US and 40% invested in Germany.
a) (3 points) Calculate the expected return of this portfolio.
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