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The Sharpe ratio of the market portfolio is equal to 2 and its profitability is 6 (%). The risk-free rate is equal to 2 (%).
The Sharpe ratio of the market portfolio is equal to 2 and its profitability is 6 (%). The risk-free rate is equal to 2 (%). You are ready to assume a level of risk such that the standard deviation will be equal to 3 (%) Explain and describe how you will implement this strategy.
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