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3. Given the following information regarding asset 1 and 2, answer the following questions. Er) = 10%, o(r) = 20%, E(r2) = 5%, o(r2) =

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3. Given the following information regarding asset 1 and 2, answer the following questions. Er) = 10%, o(r) = 20%, E(r2) = 5%, o(r2) = 25% a. Under the mean-standard deviation criteria, asset 2 is dominated by asset 1 (i.e., Asset 1 is preferred). If the asset 1 and 2 are the only available assets(correlation coefficient is not 1.0), explain why the asset 2 would not be delisted from the market. (use mean-standard deviation plane) b. Answer the above question if the correlation coefficient between asset 1 and 2 is 1.0

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