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Problem 8: Consider two stocks X and Y such that Bx-By while ox oy where a stands for the standard deviation of the returns). If

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Problem 8: Consider two stocks X and Y such that Bx-By while ox oy where a stands for the standard deviation of the returns). If Rx and Ry are expected retums on stock X and Y respectively and the stocks are priced correctly, then A) RURY B) Rx Ry C) Rx > Ry it and only if xxox toy D) RX Ry if and only if Bx ox yay E) It is not possible to have both Bx By and ox

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