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Stocks A, B, and C have expected returns of 28 percent, 28 percent, and 25 percent, respectively, while their standard deviations are 42 percent, 35
Stocks A, B, and C have expected returns of 28 percent, 28 percent, and 25 percent, respectively, while their standard deviations are 42 percent, 35 percent, and 35 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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