Question
If we have the possibility to form a portfolio combining the risk free asset and unlimited risky assets; according to Markowitz Portfolio Theory (MPT), if
If we have the possibility to form a portfolio combining the risk free asset and unlimited risky assets; according to Markowitz Portfolio Theory (MPT), if we have a lending portfolio composed 100% of the risk free asset:
| Its expected return is higher than the market portfolio; its standard deviation is smaller than the market portfolio. | ||
| Its expected return is higher than the market portfolio; its standard deviation is higher than the market portfolio.
| ||
| Its expected return is smaller than the market portfolio; its standard deviation is smaller than the market portfolio. | ||
| Its expected return is smaller than the market portfolio; its standard deviation is higher than the market portfolio. |
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
