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You are looking at two shares: X1: Average return: 0.35% Standard deviation: 3% X2: Average return: 0.17% Standard deviation: 2.24% Correlation coefficient here is: 0.2362253

You are looking at two shares:

X1:

Average return: 0.35%

Standard deviation: 3%

X2:

Average return: 0.17%

Standard deviation: 2.24%

Correlation coefficient here is: 0.2362253

The risk- free rate is: 0.04=4%

Explain why buying these two stocks could turn out profitable for you using Sharpe Ratio or other key terms.

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