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If you were to form a two-asset portfolio by investing in risk-free asset and the market portfolio, what proportions of your wealth would you invest
If you were to form a two-asset portfolio by investing in risk-free asset and the market portfolio, what proportions of your wealth would you invest in each asset? Explain why in no more than 50 words. (This is totally your decision. You could use the calculations you have done and the comments you made in making this decision.) What are expected nominal and real returns of this portfolio?
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