Question: David is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 15 percent, while

David is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 15 percent, while Copper stock has an expected return of 20 percent. If David plans to invest 30 percent of his funds in Iron and the remainder in Copper, then what will be the expected return from his portfolio? What if David invests 70 percent of his funds in Iron stock?

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