Question: Consider two stocks X and Y. X has an expected return of 0.05 and a standard deviation of 0.12. Y has an expected return of

Consider two stocks X and Y. X has an expected return of 0.05 and a standard deviation of 0.12. Y has an expected return of 0.12 and a standard deviation of 0.16. The correlation between the stocks' rates of return is - 0.20. Would any risk averse investor invest in a portfolio 'P' formed by investing 75% in X and 25% in Y? Explain

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