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Stock G has an expected return of 20% and a volatility of 50%. Stock H has an expected return of 8% and a volatility of
Stock G has an expected return of 20% and a volatility of 50%. Stock H has an expected return of 8% and a volatility of 25%. The returns of the two stocks are uncorrelated. Which of these stocks will you sell short to create a portfolio with expected return and volatility greater than the expected return and volatility of individual stocks G and H? a) Stock G b) Stock H c) Both stock G and stock H d) Neither stock G, nor stock H
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