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Consider a different CAPM economy with three risky assets A , B , and C that are uncorrelated with each other. We have: The risk
Consider a different CAPM economy with three risky assets and that are
uncorrelated with each other. We have:
The risk free rate is
i What is the Sharpe Ratio of an efficient portfolio in this economy?
ii What is the equation of the Capital Market Line?
iii What is the composition of the optimal portfolio for an investor who requires an
expected return of
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