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1 msi is considering two investment strategies a 50 percent


1. MSI is considering two investment strategies:

a. 50 percent in Project A and 50 percent in project B (Portfolio A/B)

b. 50 percent in Project A and 50 percent in the S&P 500 Fund (Portfolio A/S&P)

Compare the risk of the two portfolios. Why does the risk differ?

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