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23) You are thinking of adding one of two investments to an already well diversified portfolio. Security A Expected return 15% Standard deviation of returns

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23) You are thinking of adding one of two investments to an already well diversified portfolio. Security A Expected return 15% Standard deviation of returns Beta 3.8 Security B Expected return-15% Standard deviation of returns 10% 20.1% Beta = 2.5 If you are a risk-averse investor A) Security A B) Security B C) either is OK D) cannot be determined with information given. 3872.5. A stock is expected to return l 1% in a normal economy, 19% if the economy boom lose 8% if the economy moves into a recessionary period. Economists predict a 65 al economy, a 25% chance of a boom, and a 10% chance of a reco

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