Question: Please answer question (b) (b) An investor wishes to construct a portfolio consisting of a 30 percent allocation to a share index, 30 percent to
Please answer question (b)
(b) An investor wishes to construct a portfolio consisting of a 30 percent allocation to a share index, 30 percent to a bond and a 40 percent allocation to a commodity asset. The return on the commodity asset is 4.5 percent, while rate of return for bond is 6.6 percent and the expected return on the share index is 12 percent. Calculate the expected return on this portfolio
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