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The optimal risky portfolio in the presence of risk-free asset can be identified on a risk vs return plane by finding 1. the minimum variance
The optimal risky portfolio in the presence of risk-free asset can be identified on a risk vs return plane by finding 1. the minimum variance point on the Markowitz efficient frontier II. the maximum return point on the Markowitz efficient frontier III. the tangency point of the capital market line and an indifference curve IV. the line with the steepest slope that connects the risk-free rate to the Markowitz efficient frontier I and II O IV only O III and IV Il only
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