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Suppose investors were no longer able to access a risk-free asset. How would this change the portfolio decision process? (a) Investors would no longer find

Suppose investors were no longer able to access a risk-free asset. How would this change the portfolio decision process?

(a) Investors would no longer find the same optimal risky portfolio

(b) Investors would replace the risk-free asset with the asset with the lowest variance and proceed as normal

(c) Risk-averse investors would stop investing entirely

(d) None of the above are true

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