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Your client has 5103,000 invested in stock A. She would like to build a two-stock portfolio by investing another $103,000 in either stock B or

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Your client has 5103,000 invested in stock A. She would like to build a two-stock portfolio by investing another $103,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% and as low a risk as possible, but the standard deviation must be no more than 40% What do you advise her to do, and what will be the portfolio expected return and standard deviation? Expected Return Standard Deviation Correlation with a 1.00 B 12% 17% 12% 45% 39% C 39% 0.17 0.27 + The expected return of the portfolio with stock Bis 1% (Round to one decimal place.)

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