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A moderately risk-averse investor has 50% of her portfolio invested in stocks and 50% in risk-free Treasury bills. Discuss how the increase in the return

A moderately risk-averse investor has 50% of her portfolio invested in stocks and 50% in risk-free Treasury bills. Discuss how the increase in the return of risk-free Treasury bills will affect the investors budget line and the proportion of stocks in the portfolio. Link your answers to the degree of risk taking of individuals in every situation

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