g. ABC Bank has two loans of $20,000 each, with the following characteristics: Loan A has an expected return of 10 perce
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g. ABC Bank has two loans of $20,000 each, with the following characteristics: Loan A has an expected return of 10 perce
g. ABC Bank has two loans of $20,000 each, with the following characteristics: Loan A has an expected return of 10 percent and a standard deviation of returns of 10 percent. The expected return and standard deviation of returns for loan B are 12 percent and 20 percent, respectively. What is the expected return of this portfolio?
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