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You are consider investing in one of two well-diversified portfolio Portfolio 1 has an expected return of 7% and has average market risk while Portfolio

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You are consider investing in one of two well-diversified portfolio Portfolio 1 has an expected return of 7% and has average market risk while Portfolio 2 has an expected return of 10% and a beta of 1.20. Assuming that you are a rational risk-averse inwestor and the risk tree rate is 296, which of the two portfolios would you choose and why? Portfolio tece it has the lower Portfolio 2 baththe higher reward to ratio Portfolio 2 because it has the reward Portfolio 1 became the higher reward-to-tiskati

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