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Expected Portfolio Return for Musumeci Capital Management

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A6. (Expected portfolio return) Musumeci Capital Management has invested its portfolio as
shown here. What is Musumeci's expected portfolio return?

ASSET PORTFOLIO WEIGHT EXPECTED RETURN

Money market securities 10% 4%
Corporate bonds 20 8
Equities 70 12

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The solution examines expected portfolio return for Musumeci Capital Management.

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