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  3. 5. an investor is considering two portfolios (port

5. An investor is considering two portfolios (Portfolio 1 and 2). Both possible portfolios consist...

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Accounting

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5. An investor is considering two portfolios (Portfolio 1 and 2). Both possible portfolios consist of a 50% weight on Asset A: this asset has an expected return of 12% and a standard deviation of 18%. The other half of Portfolio 1 consists of Asset B: it has an expected return of 8% and a standard deviation of 10%. The other half of Portfolio 2 consists of Asset C: it has an expected return of 8% and a standard deviation of 14%. Can we say that the standard deviation of Portfolio 1 is smaller than the standard deviation of Portfolio 2

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