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1.You are holding a portfolio of stocks where the beta of your portfolio is 2 and its correlation with M is 1/2. The risk free
1.You are holding a portfolio of stocks where the beta of your portfolio is 2 and its correlation with "M" is 1/2. The risk free rate is 5%, the expected market return 10%, and the standard deviation of the market return is 15%. How much risk reduction could you achieve, at no sacrifice in expected return, by making your portfolio an efficient one?
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