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With clear steps . You wish to purchase shares in two companies of the following six that are available: Company A with an expected return
With clear steps
. You wish to purchase shares in two companies of the following six that are available: Company A with an expected return of 10% with a standard deviation of 10% Company B with an expected return of 10% with a standard deviation of 15% Company C with an expected return of 15% with a standard deviation of 15% Company D with an expected return of 10% with a standard deviation of 20% Company E with an expected return of 15% with a standard deviation of 20% Company F with an expected return of 20% with a standard deviation of 20% . . . Required: a) Plot these shares on a risk/return graph such as indicated below. (5) 20 15 Return % 10 5 % 1 1 10 15 20 Risk (Standard Deviation) b) As an investor who is willing to take risks in the hope of retiring early, which two shares would you buy? Explain. (5) c) As a cautious investor who requires a steady return on your investments, which two shares would you buy? ExplainStep by Step Solution
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