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Question: Considering the CML, which of the following is correct? Multiple Choice: A) As a portfolio moves beyond the point of tangency (to the right),
Question: Considering the CML, which of the following is correct?
Multiple Choice:
A) As a portfolio moves beyond the point of tangency (to the right), the allocation to equities increase.
B) The point at which the CML is tangent to the efficient frontier consists of a portfolio of 50% risky assets and 50% risk-free asset.
C) As a portfolio moves from the point of tangency to the risk-free rate, the percentage of bonds will increase.
D) None of the above is correct.
Please answer and Explain, Thankyou!
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