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QUESTION 7 Alghly risk-averse investor is considering the addition of an asset to a 10-stock portfolio. The two securities under consideration both have an expected

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QUESTION 7 Alghly risk-averse investor is considering the addition of an asset to a 10-stock portfolio. The two securities under consideration both have an expected return equal to 15 percent. However, the distribution of possible returis associated with Asset Alusa standard deviation of 12 percent, while Annet B's standard deviation is 8 percent. Both assets are correlated with the market with pe 0.75. Which one should the risk-averse investor add to hin/ber portfolio Both A and B Neither Anor B Aust A Aset B

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