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Will only upvote if answered before 8 PM. Stocks offer an expected return of 18% with a standard deviation of 22%, and gold offers an
Will only upvote if answered before 8 PM. Stocks offer an expected return of 18% with a standard deviation of 22%, and gold offers an expected return of 10% with a standard deviation of 30%. In light of the apparent inferiority of gold, would anyone hold gold? Why? No, under these circumstances one would not buy gold Yes, because of the historically low correlation with other assets Yes, because of the historically high correlation with other assets No, because gold is a hedge
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