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24 December, 10:30

If an investor wants to hold an efficient portfolio that offers an expected return of 12%, should the investor select portfolio A that exhibits a standard deviation of 4% or portfolio C that has a standard deviation of 2%?

A) The rational investor will be indifferent about the portfolio selectionB) The investor should select portfolio CC) the investor should select portfolio AWhich choice from the above is correct?

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  1. 24 December, 10:32
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    Answer: B) The investor should select portfolio C
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