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Francine can choose to invest in the following three stocks with the given characteristics: Stock A: Beta =1.1, return standard deviation =25% Stock B: Beta

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Francine can choose to invest in the following three stocks with the given characteristics: Stock A: Beta =1.1, return standard deviation =25% Stock B: Beta =2.0, return standard deviation =19% Stock C: Beta =1,0, return standard deviation =40% If Francine wanted to invest half of her portfolio in each of two different stocks, which two stocks should she pick to achieve a portfollo that earns a return closest to the risk free rate, assuming all stocks are priced correctly using CAPM? Not enough information to determine A and B B and C A and C

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