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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 .

1. What are the different types of investors based on their ability to take risk. Define them in terms their A values.
2. 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.
3. 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 risk-free assets.
4. What is an investment opportunity set (IOS)? Explain why CAL provides you with the IOS for one risky and risk-free assets.
5. How would construct an IOS using two risky assets?

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