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The expected returns and standard deviations of a stock (S) and a bond (B) are E(rS)=20% and E(r)=10%. If you want to create a new

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The expected returns and standard deviations of a stock (S) and a bond (B) are E(rS)=20% and E(r)=10%. If you want to create a new portfolio of stock and bond and your target expected return is 18%, how much should be the weight of the stock in your portfolio? FINA340 Exam 2 Formula Sheet.pdf a. 0% b. 20% c. 50% d. 80% e. None of the above choices is correct

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