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The (mean, standard deviation) pair of returns of three portfolios comprising of risky stocks are given below. It is known that only one of them
The (mean, standard deviation) pair of returns of three portfolios comprising of risky stocks are given below. It is known that only one of them is efficient under Markowitz Model 1 (i.e. the Markowitz model that involves only risky assets), and the other two are not efficient. Identify the efficient portfolio and state the reason. (M1,01) = (1%, 2%), (u2,02) = (2%,3%), (43,03) = (3%, 2%)
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