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An investor, presented with a risk-free asset and an optimal risky portfolio, is interested in increasing the Sharpe ration of her investment. Which of the
An investor, presented with a risk-free asset and an optimal risky portfolio, is interested in increasing the Sharpe ration of her investment. Which of the following strategies will help her achieve a higher Sharpe ratio? Neither will help her increase the Sharpe ratio. O Choosing a proper combination of risky and risk-free assets. Selling the risk-free asset short and investing the proceeds in the risky portfolio. Buying the risky portfolio in margin
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