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Exercise 41 Identify the following statements as True, False, or Uncertain. If False or Un- certain, explain briefly. (1) Because economists have been unable to

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Exercise 41 Identify the following statements as True, False, or Uncertain. If False or Un- certain, explain briefly. (1) Because economists have been unable to measure people's utility func- tions, mean-variance portfolio theory is inherently flawed and unusable. (ii) If two assets have a correlation of -1, it may be possible to construct a risk-free (zero-variance) portfolio even when both assets are risky (have a positive variance). (iii) It is possible for the beta of the portfolio Bp to be greater than the betas of all of the constituents even if the portfolio weights are between 0 and 1. (iv) All points on the same indifference curve are at the same level of risk for a given investor

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