Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky...
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Finance
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.
E(rP) = 15%
P = 8.5%
T-Bill rate = 3%
Proportion of complete Portfolio in P = 70%
Proportion of complete Portfolio in T-Bills = 30%
Composition of P:
Stock A
Stock B
Stock C
30%
50%
20%
What is the expected return on Emma's complete portfolio?
Select one:
a. 11.62%
b. 9.28%
c. 11.58%
d. 10.35%
e. 10.32%
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