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Consider a CAPM economy with just three risky assets, A , B , and C with expected rates of return of 5 % , 2
Consider a CAPM economy with just three risky assets, A B and C with expected
rates of return of and respectively. Two portfolios, and are known
to lie on the minimum variance frontier. They are defined by the portfolio weights
and
respectively. What are the minimum and maximum possible values for the expected
rate of return on the market portfolio?
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