Question: Stocks A, B, C, D, and E have expected returns of 15%, 10%, 12%, 20%, and 15%, respectively, while their standard deviations are 40%, 30%,
Stocks A, B, C, D, and E have expected returns of 15%, 10%, 12%, 20%, and 15%, respectively, while their standard deviations are 40%, 30%, 30%, 45%, 35%, respectively. If you were considering the purchase of each of these stock as the only holding in your portfolio and the risk-free rate is 0%, which stock should you choose?
Stock B
Stock D
Stock C
Stock E
Stock A
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