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We are considering 2 stocks for our portfolio. Stock A has an expected return of 15% and a weight of 40% in our portfolio. Stock

We are considering 2 stocks for our portfolio. Stock A has an expected return of 15% and a weight of 40% in our portfolio. Stock B has an expected return of 12% and has a weight of 60% in our portfolio.

a.Calculate the Expected return from the portfolio. (2 points)

d.Describe briefly the concept of the risk-return tradeoff. (4 points)

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