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Risk averse investors will always prefer assets with the lowest possible risk. Select one: c) True d) False Suppose that the expected rate of return

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Risk averse investors will always prefer assets with the lowest possible risk. Select one: c) True d) False Suppose that the expected rate of return on the stock market is 12% with a standard deviation of 20%. If a stock's expected return is lower than 12% and expected standard deviation higher than 20%, a risk-averse investor will never want to include it in her portfolio. Select one: a) True b) False

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