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The risk-less asset offers a certain return of 2%. The tangency portfolio has an expected return of 10%. You form a levered portfolio comprised of

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The risk-less asset offers a certain return of 2%. The tangency portfolio has an expected return of 10%. You form a levered portfolio comprised of the risk-less asset and the tangency portfolio, by borrowing 50% of your wealth at the risk-less rate. The expected return of this portfolio is closest to Select one: a. 14% b. 6% c. 2% d. 10%

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