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Pls explain why the first option is the correct answer. Also, can you explain what makes a risky asset have a higher return? Thanks! 2
Pls explain why the first option is the correct answer. Also, can you explain what makes a risky asset have a higher return? Thanks!
2 risky assets: E(rA)=9%sA=12% and E(rB)=18%sB=25% (1) wA=0.5 and wB=0.5rA,B=0.7 (2) wA=0.5 and wB=0.5rA,B=0.7 Which of the following is correct (1) and (2) have the same return, and the risk of (2) is higher (1) and (2) have the same return, and the risk of (1) is higher (1) has higher return, and the risk of (1) is also higher (2) has higher return, and the risk of (2) is also higherStep by Step Solution
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