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Business, 22.04.2020 01:32 hiiiiiiiiiiiii7032

The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8 and the beta of B is 1.5. The T-bill rate is currently 6%, while the expected rate of return on S&P500 index is 12%. The standard deviation of portfolio A is 10% annually, while that of B is 31%, and that of the index is 20%. If you currently hold a market index portfolio, would you choose to add either of these portfolios to your holdings? Discuss your answer.

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The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0...
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