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You wish to form a portfolio that yields an expected return of 13%. (a) If you choose to invest in the two stocks only, what
You wish to form a portfolio that yields an expected return of 13%. (a) If you choose to invest in the two stocks only, what is the smallest standard deviation you can achieve? (b) If instead you invest in all three assets (the two stocks and the T-bill fund), what is the smallest standard deviation you can achieve? (c) If you have $30,000 to invest, how much do you invest in Stock A, Stock B, and the T-Bill fund to form the portfolio in part (b)?
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