Question: Question 30 (7 points) Suppose E[IA] = 14.8%. A = 17.9%. E[TB] = 17.1%, and B = 31.9%. Assuming a mean-variance framework, which of the

Question 30 (7 points) Suppose E[IA] = 14.8%. A = 17.9%.

Question 30 (7 points) Suppose E[IA] = 14.8%. A = 17.9%. E[TB] = 17.1%, and B = 31.9%. Assuming a mean-variance framework, which of the following statements is true? B is preferred to A. Whether A or B is preferred depends on the correlation between the two assets. A and B are equally desirable. Which asset is preferred depends on individual preferences. A is preferred to B

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