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1 . Suppose you had held a portfolio consisting of 6 0 % of Stock A and 4 0 % of Stock B . Calculate

$1 .$ Suppose you had held a portfolio consisting of $60 %$ of Stock A and $40 %$ of Stock B $.$

Calculate the average rate of return and standard deviation for the portfolio.

$2 .$ Suppose you are a risk $-$ averse investor. Assuming Stocks A and B are your only choices,

would you prefer to hold Stock A $,$ Stock B $,$ or the portfolio? Why?

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