Question Completion Status Security A offers an expected rate of return of 12% with a...
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Question Completion Status Security A offers an expected rate of return of 12% with a standard deviation of 18%, and security B offers an expected retum of 6% with a standard deviation of 25%. Obviously, security B is inferior to security A with respect to both mean return and standard deviation. Assume investors are risk averse, would anyone hold security B? Explain your answer. For the toolbar, press ALT-F10 (PC) OF ALT-FN-F10 (MC) BI VS Paragraph Arial 14px 11! 111 N I. X
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