If You Own a Portfolio with a 14% Expected Return

question 3

Multiple Choice

If you own a portfolio with a 14% expected return, and the risk free rate is 4%, what is the expected return on the total portfolio if you invest 60% in the risky portfolio and the remainder in the risk free asset?

• A) 9%
• B) 10%
• C) 12%
• D) 14%

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