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3. (22 pts) Information related to three stocks at the market is given below: Stock Expected Return Standard Deviation Correlation Coefficient A 12% 22% PAB

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3. (22 pts) Information related to three stocks at the market is given below: Stock Expected Return Standard Deviation Correlation Coefficient A 12% 22% PAB = -0.14 B 18% 9% 16% PAC = -0.16 If you can buy only two stocks for your portfolio, which would you buy? Why? 9% Pec = 0.77

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