The distributions of rates of return for Companies AA and BB are given below: We can conclude from the above information that any rational risk-averse investor will add Security AA to a well-diversified portfolio over Security BB.

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The distributions of rates of return for Companies AA and BB are given below:  We can conclude from the above information that any rational risk-averse investor will add Security AA to a well-diversified portfolio over Security BB.

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The Answer of The distributions of rates of return for Companies AA and BB are given below:  We can conclude from the above information that any rational risk-averse investor will add Security AA to a well-diversified portfolio over Security BB.

The Distributions of Rates of Return for Companies AA and BB