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Suppose investors can invest in a risk-free asset and a risky portfolio formed out of 2 risky assets. Which of the following statements is true
Suppose investors can invest in a risk-free asset and a risky portfolio formed out of 2 risky assets. Which of the following statements is true according to portfolio theory? All investors choose the same optimal risky portfolio. All investors will put 100% of their portfolio wealth in the optimal risky portfolio. The optimal risky portfolio has the highest expected return. O The optimal risky portfolio has the smallest standard deviation
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