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There are two risky assets and one risk - free asset. Risky asset 1 has expected return 5 % and volatility 3 % . Risky
There are two risky assets and one riskfree asset. Risky asset has expected return and volatility Risky asset has expected return and volatility The riskfree rate is Each risky asset has its own capital allocation line. What is the expected return of the only portfolio that lies on both capital allocation lines?
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