Your broker Vinny calls up and asks you to consider three stocks that he thinks are just dynamite. Stock A has an expected return of 10% and a standard deviation of 5% Stock B has an expected return of 8% and a standard deviation of 6% Stock C has an expected return of 6% and a standard deviation of 3% Which (if any) of the three stocks above is dominated by another? Explain your answer.

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None of the three stocks are dominated by another Heres why Domination in Investments Two investments A and B are said to be dominated by each other if Both investments have the same expected return One investment ... View the full answer