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You have $80,000 invested in portfolio C with an expected return of 10 % and a sta 12%. You are considering invest an additional $20,000

You have $80,000 invested in portfolio C with an expected return of 10 % and a sta 12%. You are considering invest an additional $20,000 in either portfolio A or portto! th an expected return of 10% and a standard deviation of $ 20,000 in either portfolio A or portfolio B. You forecast that portfolio A has an expected return of 14%, a standard deviation of 15%, and w 4 % , a standard deviation of 15 % , and when combined with Current portfolio C, you will form a new portfolio with a standard deviation of 12%. Pon expected return of 9 %, a standard deviation of 30% , and when combined with current portfolio C, you WHitorm a new portfolio with standard deviation of 10% . The risk free rate is 2% . If you are risk neutral , out of A and B, which portfolio should be added to your current portfolio C?

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