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Consider the theory of active portfolio management. Stocks A and B have the same beta and the same positive alpha. Stock A has higher nonsystematic risk than stock B. You should want __________ in your active portfolio.

A) equal proportions of stocks A and B

B) more of stock A than stock B

C) more of stock B than stock A

D) The answer cannot be determined from the information given

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92306211

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