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An investment manager approaches you and offers you an investment productwith a claimed expected return of 12% and standard deviation of 20%. Shouldyou accept this
An investment manager approaches you and offers you an investment productwith a claimed expected return of 12% and standard deviation of 20%. Shouldyou accept this investment? Why/why not? If not, show how the manager can optimally create portfolio with an identical return volatility to his proposedportfolio but with a superior expected return. Illustrate your answer graphically,making sure to label all relevant elements of your picture.
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