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The correct graph is . Suppose you hold a large, well-diversified portfolio and are considering adding to that portfolio whether stock X or another stock,
The correct graph is . Suppose you hold a large, well-diversified portfolio and are considering adding to that portfolio whether stock X or another stock, stock Y, which has the same beta as stock X but a higher standard deviation of returns. stocks X and Y have the same expected returns: r vector _x = r vector_y = 10.6%. Which stock should you choose
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