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In this week's lecture, we introduced the mean-standard deviation plot and the efficient frontier. A portfolio on the efficient frontier maximizes return for a given
In this week's lecture, we introduced the mean-standard deviation plot and the efficient frontier. A portfolio on the efficient frontier maximizes return for a given risk level or minimizes risk for a given return. Suppose you can use all risky assets to construct the efficient frontier, do you think mutual funds are on the efficient frontier? Why or why not? Also, which financial products may be on this efficient frontier?
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