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| Teaching Since: | May 2017 |
| Last Sign in: | 352 Weeks Ago, 4 Days Ago |
| Questions Answered: | 20103 |
| Tutorials Posted: | 20155 |
MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Peter and Mary also consider selling the $100,000 of Luna stock and acquire $100,000 of ABC Company common stock instead. ABC stock has exactly the same expected return and standard deviation as Luna stock. Peter comments: “It doesn’t matter whether you keep all of the Luna stock or replace it with $100,000 of ABC stock since the expected returns and standard deviations of the two stocks are exactly the same.” State whether Peter’s comment is correct or incorrect. Justify your response.
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