Across asset classes to reduce risk while maximizing return

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You have decided to diversify your investment portfolio across asset classes to reduce risk while maximizing return. What would be your expected return of a portfolio consisting of 40% large stocks, 20% small stocks and 40% in U.S. treasury bills? Assume you expect returns from these asset classes to mirror their historical averages of 10%, 12% and 3%, respectively.

Reference no: EM131923986

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