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QUESTION 2 a) Explain what is meant by an efficient portfolio? (5 marks) b) How can an investor lose money on a stock while making

QUESTION 2

a) Explain what is meant by an efficient portfolio? (5 marks)

b) How can an investor lose money on a stock while making money on a bond investment if there is a reward for bearing risk? Aren't stocks riskier than bonds? (5 marks)

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