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You have the following information for assets C and asset D: 3 pts Expected Return(C) = 15% SD(C)= 45% Expected Return(D) = 9% SD(D) =

You have the following information for assets C and asset D: 3 pts Expected Return(C) = 15% SD(C)= 45% Expected Return(D) = 9% SD(D) = 29% Correlation = 0.30

Would any investor find it optimal to hold a 25/75 portfolio of stocks C/D? Demonstrate/Explain.

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