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In the context of portfolio theory, what does the Capital Allocation Line ( CAL ) represent? Question 1 Answer a . The relationship between risk
In the context of portfolio theory, what does the Capital Allocation Line CAL represent?
Question Answer
a
The relationship between risk and return for only risky assets.
b
The line connecting all individual assets without considering a riskfree asset.
c
The set of all possible portfolios that include both risky assets and a riskfree asset.
d
A line that shows portfolios with the maximum possible risk.
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