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The following data applies to Questions 4 and 5. Consider the following two risky assets: Expected return (%) Standard Deviation (%) Stock fund (S) 15

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The following data applies to Questions 4 and 5. Consider the following two risky assets: Expected return (%) Standard Deviation (%) Stock fund (S) 15 32 Bond fund (B) 9 23 The correlation coefficient between the stock return and the bond return is 0.5. Now construct a risky portfolio P in which Ws=0.6 and WB=0.42 What is the expected return of the risky portfolio P? Your answer should be in percentage points and accurate to the hundredth

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