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You wish to complete a portfolio with 30 % in T-Bills and the rest in a risky portfolio. The risky portfolio is has 42 %

You wish to complete a portfolio with 30 % in T-Bills and the rest in a risky portfolio. The risky portfolio is has 42 % in stocks and the rest in bonds.

E(r) Std Beta

T-Bills 3.1 %

Stocks 10.7% 28% 1,4

Bonds 5.3 % 6% 0,2

What is the complete portfolio expected return?

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