Question: Each curve ( Tall = Green, Medium = Blue, Flat = Red ) represents a stock portfolio with a mean return of 1 0 %
Each curve Tall Green, Medium Blue, Flat Red represents a stock portfolio with a mean return of Which curve is the most desirable from a risk management perspective? Why is this? If we combine the portfolios represented by the Tall and Flat curves, what should we expect to happen to a average return, and b total risk as measured by variance? What assumptions are you making?
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