Tia owns two mutual funds through her workplace retirement plan. These two are in different asset class
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Tia owns two mutual funds through her workplace retirement plan. These two are in different asset class and with different risk levels. Fund1 generates a return of 30% and Fund2 generates a return of 20%. The associated risk for Fund1 is 10 and 20 for Fund2. The risk-free rate is 10%, if she can make her own choice for her portfolio what would be her decision and why?
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To make the best decision for her portfolio Tia needs to consider the returns and risks of both ... View the full answer
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