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Suppose you have the following two stocks. Stock E(R) Standard Deviation A 23 15 B 34 30 Suppose also that T-Bills yield 8%. a) Draw

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Suppose you have the following two stocks. Stock E(R) Standard Deviation A 23 15 B 34 30 Suppose also that T-Bills yield 8%. a) Draw the capital allocation lines of the two stocks. Label the lines and the intercepts. b) Suppose you wanted to create a portfolio of stock A mixed with T-Bills. What would your return be if the standard deviation of the portfolio was 10%? C) Suppose you wanted to create a portfolio of stock B mixed with T-Bills. What would your return be if the standard deviation of the portfolio was 10%? Is this better or worse than the answer to part b

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