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Solve the question with graph 3. There are three portfolios. (a) Which is the portfolio an investor will surely NOT choose? Why? (b) The risk-free

image text in transcribedSolve the question with graph

3. There are three portfolios. (a) Which is the portfolio an investor will surely NOT choose? Why? (b) The risk-free asset has the rate of return 6%. Which portfolio(s) will the investor NOT choose to form a new portfolio with the risk-free asset? [Hint: how can you calculate a straight line's slope?] (c) The risk-free asset has the rate of return 6%. There is another portfolio P4 with E(r4)=24% and 4=4. When the risk-free asset is available, can you construct a portfolio, which dominates P3

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