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22. You are a fund manager who is managing Bauer High-Tech Fund. Your current portfolio isa mix of P and the riskfree asset is F.

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22. You are a fund manager who is managing Bauer High-Tech Fund. Your current portfolio isa mix of P and the riskfree asset is F. You analyze all available information and summarize it in the following table. The last column shows the correlation between P and a new stock. Suppose today Palantir, WeWork, Warby Parker, Uber, and Airbnb are available in the market because of their IPOs. Now your boss asks you to include only one stock among them in your portfolio to adjust the risky part of your portfolio. Also, your boss wants you to use only 5% of the value of the current risk part P of your whole portfolio to buy a new stock. For example, if you choose Uber, the new risky part of your portfolio weight will be (Uber, P)-(5%, 95%) Corr(P, ...) SD[r] 13.0% 0.0% 38.0% 45.0% 48.0% 60.0% 40.0% E[rl 9.0% 2.0% 12.0% 14.0% 16.0% 17.0% 13.0% Asset Palantir WeWork Warby Parker Uber Airbnb 0.40 0.70 0.50 0.60 0.55 What stock should you include in your portfolio if you prefer high expected return and low volatility? Type the number only 1) Palantir 2) WeWork 3) Warby Parker 4) Uber 5) Airbnlb 6) None of them

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