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Posted on May 12, 2023

Suppose that you need to pick one (and only one) of the funds below which you will later mix in a portfolio with the risk-free

Suppose that you need to pick one (and only one) of the funds below which you will later mix in a portfolio with the risk-free asset.

If the risk-free rate is equal to 296, which one would to pick?

Fund A Fund B Fund C Expected Return Volatility 13,00% 20,00% 15,00% 30,00% 6,00% 15,00%

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