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You are building a risky portfolio for a client. You will combine two risky funds. The first fund has a beta of 0.8, while the
You are building a risky portfolio for a client. You will combine two risky funds. The first fund has a beta of 0.8, while the second fund has a beta of 0.9. You will invest 42.67% in the first fund, and the rest in the second fund. The expected market return is 0.165, and the risk free rate is 0.026. What is the expected return on the portfolio you are building?
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