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Asset A offers an expected rate of return of 10% with a standard deviation of 25%. Asset B offers an expected rate of return of
Asset A offers an expected rate of return of 10% with a standard deviation of 25%. Asset B offers an expected rate of return of 5% with a standard deviation of 30%. Assume that the risk-free interest rate is zero.
Show with calculations that there is NO diversification benefit resulting from forming the portfolio. [Refer to implications of linear and curvy efficient frontiers]
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