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I have equivalent weightage in % for three different stocks (Total equals to 1) for 2 methods; allow short selling, leverage and no short selling,
I have equivalent weightage in % for three different stocks (Total equals to 1) for 2 methods; allow short selling, leverage and no short selling, leverage. Additionally, E(rp), Var(rp) and Sharpe ratio are exactly the same for both methods using Excel Solver. Hence, can I conclude that both methods are indifferent in terms of risk or no short selling, leverage is the safer method between both
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