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a.) If you were to form a two-asset portfolio by investing in risk-free asset and the market portfolio, what proportions of your wealth would you

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a.) If you were to form a two-asset portfolio by investing in risk-free asset and the market portfolio, what proportions of your wealth would you invest in each asset? Explain why.

c.) What are expected nominal and real returns of this portfolio? (Use the average return of an asset as its expected return).

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