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Assume you are evaluating two stocks, Stock A and Stock B. Stock A has an...

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Assume you are evaluating two stocks, Stock A and Stock B. Stock A has an expected return and standard deviation of 10 percent and 25 percent, respectively. Stock B has an expected return and standard deviation of 15 percent and 40 percent, respectively. Assuming their correlation is 2, create a graph of the investment opportunity set. (Use the curve tool "Investment opportunity set" to show the investment opportunity set. Plot 11 points.) Tools 16 15 14 13 12 11 10 Investment of 9 Portfolio Return 5 4 3 2 1 a 0 0.45 0.35 0.40 Portfolio Std Dev 0.05 10.10 0.15 20.20 1.25 0.30 Assume you are evaluating two stocks, Stock A and Stock B. Stock A has an expected return and standard deviation of 10 percent and 25 percent, respectively. Stock B has an expected return and standard deviation of 15 percent and 40 percent, respectively. Assuming their correlation is 2, create a graph of the investment opportunity set. (Use the curve tool "Investment opportunity set" to show the investment opportunity set. Plot 11 points.) Tools 16 15 14 13 12 11 10 Investment of 9 Portfolio Return 5 4 3 2 1 a 0 0.45 0.35 0.40 Portfolio Std Dev 0.05 10.10 0.15 20.20 1.25 0.30

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