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Vicky wants to combine the market portfolio with the risk-free asset to form her optimal personal portfolio. The market portfolio has an expected return of

Vicky wants to combine the market portfolio with the risk-free asset to form her optimal personal portfolio. The market portfolio has an expected return of 12% and volatility of 15%. The risk-free rate is 5%. If she wants to limit her personal portfolio's volatility to 9%, roughly what return should she expect?

7%

8%

9%

10%

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