A highly risk averse investor is considering the addition of an asset to a 10 stock portfolio The two securities under consideration both have an expected return equal to 15 percent However, the distribution of possible returns associated with Asset A has a standard deviation of 12 percent, while Asset B's standard deviation is 8 percent Both assets are correlated with the market with p 0 75 Which asset should the risk averse investor add to his her portfolio Select one a Asset A b Asset B c Both A and B d Neither A nor B e Cannot tell without more information

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A highly risk averse investor is considering the addition of an asset to a 10 stock portfolio  The two securities under consideration both have an expected return equal to 15 percent  However, the distribution of possible returns associated with Asset A has a standard deviation of 12 percent, while Asset B's standard deviation is 8 percent  Both assets are correlated with the market with p   0 75  Which asset should the risk averse investor add to his her portfolio  Select one  a  Asset A b  Asset B  c  Both A and B  d  Neither A nor B  e  Cannot tell without more information

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A highly risk-averse investor is considering the addition of an asset to a 10-stock portfolio. The two securities under consideration both have an expected return

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