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You have 2 stocks and a risk-free asset to combine into a portfolio. The optimal combination of the 2 stocks is best summarized as finding

You have 2 stocks and a risk-free asset to combine into a portfolio. The optimal combination of the 2 stocks is best summarized as finding _____.

where the expected return is maximized

where the reward-to-variability ratio is maximized

where the reward-to-variability ratio is minimized

where the risk (standard deviation) is minimized

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