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The following table summarized information about two risky stocks S and C. Colonel Motors (C) Separated Edison (S) Expected Return 14% 8% Standard Deviation 6%

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The following table summarized information about two risky stocks S and C. Colonel Motors (C) Separated Edison (S) Expected Return 14% 8% Standard Deviation 6% 3% If the correlation coefficient between the returns of stocks S and C is 0.5. How does your investment opportunity set (obtained by combining stocks S and C) look like (short selling not allowed)? 0 14 30 6.0 14. 10.0 80 3.0 60 14.0 8. 30 60

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