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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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