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Information related to three stocks at the market is given below: Stock Expected Return A 12% B 9% C 9% Standard Deviation A 22% B

Information related to three stocks at the market is given below:

Stock Expected Return

A 12%

B 9%

C 9%

Standard Deviation

A 22% B 18% C 16%

Correlation Coefficient

AB = 0.14 BC = 0.77 AC = 0.16

If you can buy only two stocks for your portfolio, which would you buy? Why?

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