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Remaining Time: 2 hours, 29 minutes, 28 seconds. Question Completion Status: QUESTION 7 The distributions of rates or return for Companies XA and YB are

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Remaining Time: 2 hours, 29 minutes, 28 seconds. Question Completion Status: QUESTION 7 The distributions of rates or return for Companies XA and YB are given below: State of the Economy Boom Normal Recession Probability of This State Occurring 0.2 0.6 30% - 10% 10% 5% -5% 50% 0.2 We can conclude from the above information that any rational, risk-averse investor would be better off adding Security XA to a well-diversified portfolio over Security XB. Why is this statement TRUE or FALSE?. Explain! TT I Arial 3 (12pt) Click Save and submit to save and submit. Click Save All Answers to save all answers, O ch e 994 A Priser F11 F3 F FB FO F10 $ & * % 5 3 4 6 7 8 9 E RT Y U 0

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