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Consider a two assets portfolio. The portfolio has three assets A, B, and C, and...

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Finance

Consider a two assets portfolio. The portfolio has three assets A, B, and C, and the following details:

Investment Returns

A $25,000 7%

B $75,000 8%

C $25,000 6%

(a) (5 points) Compute the return of the portfolio.

(b) (5 points) Compute the return of an equal-weight portfolio.

(c) (3 points) Which strategy performs better? Be specific.

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