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Three portfolios have the following expected returns and risk:PortfolioExpected return Standard deviation Jones 4 % 6 % Kelly Lewis 7 % 2 % 5 %
Three portfolios have the following expected returns and risk:PortfolioExpected return Standard deviation
Jones
Kelly
Lewis
A riskaverse investor choosing from these portfolios could rationally select:
O Jones.
O Kelly.
O Lewis.
O Jones or Kelly, but not Lewis
O Kelly or Lewis, but not Jones.
O any of these portfolios.
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