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) Suppose you would like to invest in world stocks generating an expected return of 10%, but do NOT have access to so many different

) Suppose you would like to invest in world stocks generating an expected return of

10%, but do NOT have access to so many different capital markets. However, you can invest in the S&P 500 (expected return of 12%) and Treasury Bills (expected return of 4%). Can you construct a portfolio from the S&P 500 and Treasury Bills to replicate the expected return of the world stocks?

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