The return on the risky portfolio is 18 the risk-free rate


The return on the risky portfolio is 18%. The risk-free rate as well as the investor's borrowing rate is 10%. The standard deviation of return on the risky portfolio is 20%. If the standard deviation on the complete portfolio is 25%, the expected return on the complete portfolio is __________.

A. 16.00%

B. 16.40%

C. 19.20%

D. 20.00%

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Financial Management: The return on the risky portfolio is 18 the risk-free rate
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