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Suppose you allocate 4/5 of your portfolio value to a stock that has an expected return of 4% and the rest to another stock that
Suppose you allocate 4/5 of your portfolio value to a stock that has an expected return of 4% and the rest to another stock that has an expected return of 16%. What is the expected return on your two-stock portfolio? Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34\%, type 12.34)
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