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Stocks A, B, and C have expected returns of 18 percent, 18 percent, and 15 percent, respectively, while their standard deviations are 45 percent, 29
Stocks A, B, and C have expected returns of 18 percent, 18 percent, and 15 percent, respectively, while their standard deviations are 45 percent, 29 percent, and 29 percent, respectively. If you were considering the purchase of each of these stocks as the only holding in your portfolio and the risk-free rate is 0 percent, which stock should you choose?
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