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You have decided to diversify your investment portfolio


You have decided to diversify your investment portfolio across asset classes to reduce risk while maximizing return. What would be your expected return of a portfolio consisting of 40% large stocks, 20% small stocks and 40% in U.S. treasury bills? Assume you expect returns from these asset classes to mirror their historical averages of 10%, 12% and 3%, respectively.

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Financial Management: You have decided to diversify your investment portfolio
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