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Consider an optimal risky portfolio (= P*) and a risk-free asset (= F). The optimal risky portfolio P* consists of two stocks, S1 and S2.
Consider an optimal risky portfolio (= P*) and a risk-free asset (= F). The optimal risky portfolio P* consists of two stocks, S1 and S2. Suppose that all investors will need to choose a mix of P* and...
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