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1.MSI is considering two investment strategies: a.50 percent in Project A and 50 percent in project B (Portfolio A/B) b.50 percent in Project A and

1.MSI is considering two investment strategies:

a.50 percent in Project A and 50 percent in project B (Portfolio A/B)

b.50 percent in Project A and 50 percent in the S&P 500 Fund (Portfolio A/S&P)

Compare the risk of the two portfolios.Why does the risk differ?

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