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Q 1(c) The risk-free rate is 2% and the borrowing rate is 5%. The expected return on the risky asset is 11% and standard deviation

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Q 1(c) The risk-free rate is 2% and the borrowing rate is 5%. The expected return on the risky asset is 11% and standard deviation is 17%. Describe the investment opportunity set available to investors in this case. Your answer should include a graph. (14 Marks) [TOTAL MARKS: 25)

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