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Simple answers please, short on time. The addition of a risk free security to a fully diversified portfolio: must decrease the portfolio's expected return. must

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Simple answers please, short on time.

The addition of a risk free security to a fully diversified portfolio: must decrease the portfolio's expected return. must increase the portfolio beta. may or may not affect the portfolio beta. will increase the unsystematic risk of the portfolio. will have no effect on the portfolio beta or its expected return

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