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Stock A and B have the following characteristics: Their correlation is 0 . Which among A and B seems attractive option to you? Consider a

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Stock A and B have the following characteristics: Their correlation is 0 . Which among A and B seems attractive option to you? Consider a portfolio, P, which consists of 80% of stock A and 20% of stock B. What is the mean and standard deviation of portfolio P 's return? Given that stock A dominates stock B ( A has the same mean but lower risk), explain why you ever include stock B in your portfolio

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