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The expected rate of return and standard deviations, respectively for four stocks are given below: RPQ 9%, 3% XYZ 11%, 9% GGG 12%, 8% TUV

The expected rate of return and standard deviations, respectively for four stocks are given below:

RPQ 9%, 3%

XYZ 11%, 9%

GGG 12%, 8%

TUV 14%, 10%

Which stock is most desirable according to return-risk trade-off relation? Show work. (The only answer given by professor is 17.6%)

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