Question: Plot the following three stocks in the mean-variance space and argue analytically that R cannot be on the mean-variance efficient frontier. Hint: Try to form

Plot the following three stocks in the mean-variance space and argue analytically that R cannot be on the mean-variance efficient frontier. Hint: Try to form a portfolio with Q and S that gives the same expected return as R.

Portfolio Expected Return, Standard Deviation

Q 10% 15%

R 10.5% 16.5%

S 11.5% 18.5%

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