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Consider the following four stocks: Stock Expected Return (E[r]) Standard Deviation A 0.12 0.30 B 0.15 0.50 C 0.21 0.16 D 0.25 0.21 1) According

Consider the following four stocks: Stock Expected Return (E[r]) Standard Deviation A 0.12 0.30 B 0.15 0.50 C 0.21 0.16 D 0.25 0.21 1) According to the mean-variance dominance principle, which stock a rational and risk-averse investor will choose from stocks A, B and C? How does this choice compare with stock D?

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