Which security, A, B, or C, will provide the greatest return per unit of risk when combined

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Which security, A, B, or C, will provide the greatest return per unit of risk when combined with the risk-free asset with a 5 percent rate of return?

ERA = 20 percent, σA= 5 percent

ERB= 25 percent, σB= 10 percent

ERC= 30 percent, σC= 15 percent


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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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