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Assume you are evaluating two stocks, Stock A and Stock B. Stock A has an expected return and standard deviation of 10 percent and 25

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Assume you are evaluating two stocks, Stock A and Stock B. Stock A has an expected return and standard deviation of 10 percent and 25 percent, respectively. Stock B has an expected return and standard deviation of 15 percent and 40 percent, respectively. Assuming their correlation is 2, create a graph of the investment opportunity set. (Use the curve tool "Investment opportunity set" to show the investment opportunity set. Plot 11 points.) 16 Tools 15 14 13 . Investment of 12 11 10 Portfolio Return 8 6 5 4 3 2 1 0 0.25 0.30 0.35 0.40 0.45 0.05 0.10 0.15 0.20 Portfolio Std Dev

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