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1 . What are the different types of investors based on their ability to take risk. Define them in terms their A values. 2 .
What are the different types of investors based on their ability to take risk. Define them in terms their A values.
What is an indifference curve IC What is a Capital Allocation Line CAL What are the inputs you need to construct an IC and a CAL.
Briefly discuss how would you find out the optimal complete portfolio. Also discuss how would you find out what would be optimal use of you fund capital when you invest in one risky and one riskfree assets.
What is an investment opportunity set IOS Explain why CAL provides you with the IOS for one risky and riskfree assets.
How would construct an IOS using two risky assets?
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