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You currently have $1,000 to invest. You feel very good about Stock X, and you wish to buy $3,000 worth of Stock X. You plan

You currently have $1,000 to invest. You feel very good about Stock X, and you wish to buy $3,000 worth of Stock X.

You plan to achieve this by short selling $2,000 worth of Stock Y.

What is the expected return on this portfolio, if the expected return on Stock X is 10 percent and the expected return on Stock Y is 5 percent?

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