Question: Look at Figure. The unlabeled dot on the far right of the graph represents the average return and standard deviation of Advanced Micro Devices. Down

Look at Figure. The unlabeled dot on the far right of the graph represents the average return and standard deviation of Advanced Micro Devices. Down and to the left from that point you can see the position of American Airlines. Now imagine that you form a portfolio with half of your money in AMD and half in AMR. Where do you think that portfolio would plot in Figure?

Average Return (%) 25.0% e Wal-Mart 20.0%- Anheuser- Busch 15.0%- American Airlines 10.0% Archer Daniels Midland 5.0% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Standard Deviation (systematic +unsystematic risk)

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