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Portfolio Portfolio A Portfolio B Portfolio C D Expected return 20% 24% 12% 15% Standard deviation 12% 15% 7% 8% Your client, William F. Sharpe,

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Portfolio Portfolio A Portfolio B Portfolio C D Expected return 20% 24% 12% 15% Standard deviation 12% 15% 7% 8% Your client, William F. Sharpe, is considering investing in one of the portfolios described above. Assuming a risk-free rate of 2%, which portfolio would he rationally prefer to invest in if he wants to optimize the return-to-risk relationship

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