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Use the following information for the next five questions. Assume you have a two risky...

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Finance

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Use the following information for the next five questions. Assume you have a two risky asset world and the assets have a correlation of 1. Asset A has an expected return of 10% and a standard deviation of 10%. Asset B has an expected return of 20% and a standard deviation of 20%. On a graph with expected return on the y-axis and standard deviation on the x-axis, show the portfolio opportunity set from combining the two assets into a portfolio. Comment on the desirability of holding Asset A in the three asset (Asset A, Asset B and the riskfree asset) world we have created, i.e., what sort of investor would want to hold Asset A in his/her portfolio

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