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Your forecast for stocks rate of return is 10% and the S&P 500 rate of return is 6%; your boss orders you to liquidate your
Your forecast for stocks rate of return is 10% and the S&P 500 rate of return is 6%; your boss orders you to liquidate your investment firm's holdings of safe bonds (which give a rate of return of 3%) and buy only stocks, why?Under what assumptions? Explain.
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