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For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments available to the investor) and expain: a
For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments available to the investor) and expain:
a. Portfolio Ar = 18%σ = 20%
Portfolio Br = 14%σ = 20%
b.Portfolio Cr = 15%σ = 18%
Portfolio Dr = 13%σ = 8%
c. Portfolio Er = 14%σ = 16%
Portfolio Fr = 14%σ = 10%
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