Line [4] You can invest in two assets. One is a risk free asset yielding an interest

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Line [4]

You can invest in two assets. One is a risk free asset yielding an interest rate of r/.

The other is an asset with expected return E[ri] and standard deviation a-i- Show that combinations of these two assets map as a straight line in a mean-standard deviation plot.

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Lectures On Corporate Finance

ISBN: B00RGENH5I

1st Edition

Authors: Peter L Bossaerts ,Bernt Arne Odegaard

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