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Consider the theory of active portfolio management. Stocks A and B have the same beta and the same positive alpha. Stock A has higher nonsystematic
Consider the theory of active portfolio management. Stocks A and B have the same beta and the same positive alpha. Stock A has higher nonsystematic risk than stock B. You should want __________ in your active portfolio.
A) equal proportions of stocks A and B
B) more of stock A than stock B
C) more of stock B than stock A
D) The answer cannot be determined from the information given
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