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Consider the following information in answering the next two questions: Stock X Stock Y Market index Risk-free rate Forecasted return 16.25% 17.35 12.50 3.00 Standard

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Consider the following information in answering the next two questions: Stock X Stock Y Market index Risk-free rate Forecasted return 16.25% 17.35 12.50 3.00 Standard deviation 23.00 25.00 14.00 Beta 1.4 1.5 1.0 1) Which investment would be more appropriate for an investor who wants to add this investment to a well-diversified equity portfolio? A. Stock X B. Stock Y C. Risk free asset D. Market portfolio [Using information provided above, answer the following question.]Which stock would be more appropriate for an investor who wants to hold this stock as a single-stock portfolio? 2) A) Stock X B) Stock Y

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