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Regarding portfolio optimization for an individual investor, which of the following is not correct? Tangency portfolio is the optimal mix of risky assets. Diversification makes
Regarding portfolio optimization for an individual investor, which of the following is not correct?
Tangency portfolio is the optimal mix of risky assets.
Diversification makes lower risk investments that would otherwise not be feasible.
Presence of the risk-free security changes the optimal mix for an individual investor.
Risk aversion does not affect the final portfolio allocation.
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