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Suppose the expected return for the market portfolio and risk-free rate are 13% and 3% respectively.Stocks A, B, and C have Treynor measures of 0.24,
Suppose the expected return for the market portfolio and risk-free rate are 13% and 3% respectively.Stocks A, B, and C have Treynor measures of 0.24, 0.16, and 0.09, respectively. Based on this information an investor should:
A. Buy stocks A, B, and C B. Buy stocks A and B and sell stock C C. Buy stock A and sell stocks B and C D. Sell stocks A, B, and C
E. Hold stocks A, B, and C
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