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(Solved): Assume that Mr. ABC holds a portfolio consisting of technology stocks and Mr. XYZ holds a portfolio ...



Assume that Mr. ABC holds a portfolio consisting of technology stocks and Mr. XYZ holds a portfolio consisting of real estate stocks. Both of these investors are planning to invest in some more stocks . The options available to them are: Microsoft (standard deviation=20%) ; Bank of America (standard deviation=15%) ; Walmart (standard deviation=10%) ; Toyota (standard deviation=5%) . Which stock is riskier for Mr. ABC and which stock is riskier for Mr. XYZ? Briefly explain.



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Microsoft is a more risky investment for Mr. ABC, at the same time as Toyota is a more unstable funding for Mr. X
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