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Question 3. Consider a portfolio of Intel and Coca-cola stock. Suppose an investor believe these stocks are uncorrelated and will perform as follows: Stock Intel

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Question 3. Consider a portfolio of Intel and Coca-cola stock. Suppose an investor believe these stocks are uncorrelated and will perform as follows: Stock Intel Coca-cola Expected return 26% 6% Volatility 50% 25% A. How should the investor choose a portfolio of these two stocks? That is, compute return and volatility of portfolios with 0% and 100%, 20% and 80%, 40% and 60% mix, draw portfolio frontier and mark efficient portfolios and inefficient portfolios. B. Ryan has invested 100% of his money in Coca-Cola but would like to earn the highest expected return without increasing his volatility. Which portfolio would you recommend

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