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The expected return of the portfolio with stock B is __ The expected return of the portolfio with stock C is __ The standard deviation
The expected return of the portfolio with stock B is __
The expected return of the portolfio with stock C is __
The standard deviation of the portfolio with stock B is __
The standard deviation of the portfolio with stock C is __
You would advise your client to choose stock __ because it will produce the portfolio with the lower standard deviation.
Your client has $95,000 invested in stock A. She would like to build a two-stock portfolio by investing another $95,000 in either stock B or C. She wants a portfolio with an expected return of at least 15.0% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation?
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