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The Returns for Two Assets,A and B,are 5% and 8 3.25%3.25 \%

Question 29

Multiple Choice

The returns for two assets,A and B,are 5% and 8% respectively.If an investor holds 25% of her wealth in asset A,what is the continuously compounded return of a value-weighted portfolio comprising assets A and B?


A) 3.25%3.25 \%
B) 6.25%6.25 \%
C) 6.75%6.75 \%
D) 7.25%7.25 \%

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