Question: e . Suppose you hold a large, well - diversified portfolio and are considering adding to that portfolio either Stock x or another stock, Stock

e. Suppose you hold a large, well-diversified portfolio and are considering adding to that portfolio either Stock x or another stock, Stock Y, which has the same beta as Stock x but a higher standard deviation of returns. Stocks x and Y have the same expected returns: hat(r)x=hat(r)Y=10.6%. Which stock should you choose?
e. Suppose you hold a large, well-diversified portfolio and are considering

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