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There are only two risky securities A and B and the correlation coefficient between the returns of the securities is - 1 . Question: Observe
There are only two risky securities A and and the correlation coefficient between the returns of the securities is
Question: Observe the figure below and select the correct answer.
A riskaverse investor would be indifferent between investing in any of the portfolios on the line CF
Security B is dominated by security A
Portfolios on the semi line EF are constructed by taking a short position in A and taking a long position in
Every investor would choose to invest only in portfolio A
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