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Consider two portfolios. Portfolio A has an average return of 10% and standard deviation of 20%. Portfolio B has an average return of 20% and
Consider two portfolios. Portfolio A has an average return of 10% and standard deviation of 20%. Portfolio B has an average return of 20% and standard deviation of 30%. The risk-free rate is 5%. Which portfolio has a better risk/return tradeoff? Type in 1 if your answer is "A" and 2 if your answer if "B. 0 1 0 2 1 pts Question 7 What do you think would happen to the expected return on stocks if investors perceived an increase in the volatility of stocks? Type in 1 if your answer is "increase" and 2 if your answer is "decrease." 0 1 0 2
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