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The existence of a risk less security in the risk & return trade off A Does NOT influence investors preferences regarding which risky portfolio to

The existence of a risk less security in the risk & return trade off

A Does NOT influence investors preferences regarding

which risky portfolio to hold.

B Results in investors all holding different portfolios of

risky assets, depending on their individual risk

preferences.

C Results in investors all holding the same portfolio of

risky assets, which corresponds to the tangency

point of the efficient portfolio frontier of risky assets

and a line through the riskless

asset's return.

D None of the above.

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