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choosing to invest in these three stocks: Stock A) Beta=1.1 return standard deviation = 25% Stock B) Beta= 3.0 return standard deviatjon = 19% Stock
choosing to invest in these three stocks:
Stock A) Beta=1.1 return standard deviation = 25%
Stock B) Beta= 3.0 return standard deviatjon = 19%
Stock C) Beta= -1.0 return standard deviation= 40%
If sally wants to invest half of her portfolio im each of two different stocks, which two stocks should she pick to get a portfolio that earns a return closetst to the market portfolio, assuming all stocks are priced correctly using CAPM?
A) A and B
B) A and C
C) B and C
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