In light of the apparent inferiority of gold to stocks with


Stocks offer an expected rate of return of 10% with a standard deviation of 20%, and gold offers an expected return of 5% with a standard deviation of 25%. In light of the apparent inferiority of gold to stocks with respect to both mean return and volatility, would anyone hold gold? If so, demonstrate graphically why one would do so.

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Financial Management: In light of the apparent inferiority of gold to stocks with
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