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18. If investors can borrow and lend at risk-free rate of 4%, which of the following portfolios is best to own: T 1 2 3

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18. If investors can borrow and lend at risk-free rate of 4%, which of the following portfolios is best to own: T 1 2 3 E(R) 0.12 0.18 0.20 SD 0.10 0.15 0.16 a. Portfolio 1 b. Portfolio 2 C. Portfolio 3 d. None of the above

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