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The market portfolio has an expected return of 18% and the risk-free rate is 6%. An investor lends $100 at the risk-free rate and invests

The market portfolio has an expected return of 18% and the risk-free rate is 6%. An investor lends $100 at the risk-free rate and invests a further $100 in the market portfolio. What is his expected return?

12.0%

32.0%

19.6%

18.6%

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