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i) Given a simple world with two assets, a bond fund and a stock fund, clearly detail the steps involved in arriving at the 1)
i) Given a simple world with two assets, a bond fund and a stock fund, clearly detail the steps involved in arriving at the 1) efficient frontier, and 2) market (optimal) portfolio. ii) What is the significance of the Capital Market Line? To be more specific, what relationship does this line depict? Give a brief discussion on its application. Please answer as detailed as possible thanks
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