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Suppose you are building a two-asset portfolio with either stocks A and B or Stocks C and D. Explain, with the aid of a diagram,
Suppose you are building a two-asset portfolio with either stocks A and B or Stocks C and D. Explain, with the aid of a diagram, the conditions under which the optimal portfolio with stocks C and D dominates the optimal portfolio with stocks A and B. (15 marks) Suppose you are building a two-asset portfolio with either stocks A and B or Stocks C and D. Explain, with the aid of a diagram, the conditions under which the optimal portfolio with stocks C and D dominates the optimal portfolio with stocks A and B. (15 marks)
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