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The expected return of portfolio A is 16% and portfolio B is 25%. Their standard deviations are 21% (portfolio A ) and 30% (portfolio B).

The expected return of portfolio A is 16% and portfolio B is 25%. Their standard deviations are 21% (portfolio A ) and 30% (portfolio B). If the risk-free rate is 4%, which portfolio is the dominant . Show the concept (and formula) used to define dominance and all calculations.

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