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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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