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Portfolio A has expected return of 10% and standard deviation of 19%. Portfolio B has expected return of 12% and standard deviation of 17%. Rational

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Portfolio A has expected return of 10% and standard deviation of 19%. Portfolio B has expected return of 12% and standard deviation of 17%. Rational investors will sell A short and buy B borrow at the risk free rate and buy A borrow at the risk free rate and buy B sell B short and buy A

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