What is the expected return on portfolio

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Your client wants to keep the level of risk of her portfolio at the same level of portfolio C (i.e. standard deviation of 15%) but take advantage of diversification. If she invests $200,000 in A and MVEP, how much should she invest in portfolio A and how much in the MVEP ? How much in each of the portfolios B and C? What is the expected return on her portfolio in this case ? Compare it to the expected return on Pl obtained in part (B) and explain the difference, if any.

Reference no: EM133068784

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