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You are forming a portfolio that includes stock ABC, stock DEF and stock XYZ. To conduct the analyses, you collect the following information about stock
You are forming a portfolio that includes stock ABC, stock DEF and stock XYZ. To conduct the analyses, you collect the following information about stock ABC, DEF and XYZ in the table below:
Stock | Amount Invested | Expected Return | Standard Deviation |
ABC | $ 2,000 | 0.0289 | 0.1045 |
DEF | $ 3,000 | 0.1471 | 0.1825 |
XYZ | $ 5,000 | 0.0998 | 0.1330 |
What is the expected rate of return for your portfolio?
Please round your answer to the fourth decimal. For example, 0.1234.
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