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The expected return of the current portfolio is 10%. A new project is being considered that would be added to the existing portfolio if accepted.

The expected return of the current portfolio is 10%. A new project is being considered that would be added to the existing portfolio if accepted. The new project would comprise 40% of the entire new portfolio. The expected return of the new project is 11%. Calculate the expected return of the combined new portfolio.

11%

10.8%

10.4%

10%

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