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Portfolio Management question (b) The graph below shows possible portfolios with different combinations of risky portfolio and risk-free investment on new efficient frontier. E(R port)

Portfolio Management question

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(b) The graph below shows possible portfolios with different combinations of risky portfolio and risk-free investment on new efficient frontier. E(R port) PB M NEW EFFICIENT FRONTIER RFR El port i. Explain how do investors achieve new efficient frontier. (9 marks) ii. Explain the investor's risk profile of portfolio PA and portfolio PB. (6 marks)

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