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Suppose you have $2,411 in cash to invest. You decide to short sell $1,920 worth of Pepsi stock and invest the proceeds from your short
Suppose you have $2,411 in cash to invest. You decide to short sell $1,920 worth of Pepsi stock and invest the proceeds from your short sale, plus your $2,411 in IBM. If the expected return on IBM is 18% and the expected return on Pepsi is 9%, what is the expected return of your portfolio? Report your answer in decimal form and round to 4 decimal points.
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