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You have the following information for stock portfolio C and bond portfolio D that will be used to form a risky portfolio: Compute the standard
- You have the following information for stock portfolio C and bond portfolio D that will be used to form a risky portfolio:
- Compute the standard deviation of a risky portfolio that is 25/75 invested in portfolios C/D.
- Compute the expected return of the minimum variance portfolio (MVP).
- Would any investor choose to hold the risky portfolio 25/75 in part a)? Explain why or why not.
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