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Suppose Deborah is choosing how to allocate her portfolio between two asset classes: risk - free government bonds and a risky group of dive stocks.

Suppose Deborah is choosing how to allocate her portfolio between two asset classes: risk-free government bonds and a risky group of dive stocks. The following table shows the risk and return associated with different combinations of stocks and bonds.
\table[[,Fraction of Portfolio in Diversified,Average Annual,Standard Deviation of Portfolio Return],[Combination,Stocks,\table[[Return],[(Percent)]],\table[[(Percent)]]],[A,0,4.00,(Percent)],[B,25,6.00,0],[C,50,8.00,10],[D,75,10.00,15],[E,100,12.00,20]]
If Deborah reduces her portfolio's exposure to risk by opting for a smaller share of stocks, she must also accept a average annual
Suppose Deborah currently allocates 75% of her portfolio to a diversified group of stocks and 25% of her portfollo to risk-free bonds; that is, chooses combination q,
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