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Assume that an investor holds a portfolio of 20 randomly chosen stocks. He is thinking about adding one of two additional stocks. Stock A

"Assume that an investor holds a portfolio of 20 randomly chosen stocks. He is thinking about adding one of two additional stocks. Stock A is a pharmaceutical company in the middle of a drug trial for a major cancer treatment. Stock B is a nationwide construction company that primarily builds new houses. Both pay an expected return of 10% and have a standard deviation of 20%. Which asset is the investor likely to prefer, or will he be indifferent between the two? Explain your reasoning"

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