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3. (a) What are the main principles of (Markowitz) portfolio theory? How does the risk-free lending and borrowing extend the range of investment possibilities (in
3. (a) What are the main principles of (Markowitz) portfolio theory? How does the risk-free lending and borrowing extend the range of investment possibilities (in relation to the efficient portfolio on the efficient frontier)? (b`) Details of the shares held in a portfolio are given below:
Calculate the expected return and beta of this portfolio. How does the risk of this portfolio compare with that of the market portfolio?
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