Question: You have the following data: expected annual return on a common stock fund: 13.6% expected annual return on a bond fund: 5% proportion of the

You have the following data:

  • expected annual return on a common stock fund: 13.6%
  • expected annual return on a bond fund: 5%
  • proportion of the portfolio invested in the stock fund: 0.66

Calculate the expected return on the portfolio containing this mix of the stock and bond funds.

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