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You have an optimal portfolio of stocks, risky bonds and the riskfree asset. Holding everything else fixed, if you now have the option to incorporate
You have an optimal portfolio of stocks, risky bonds and the riskfree asset. Holding everything else fixed, if you now have the option to incorporate another asset with positive return and zero correlation with stock and bond (say, bitcoin) into your portfolio. What would happen? OOOR OOK A. the Sharpe ratio of the tangency portfolio would increase B. the Sharpe ratio of the tangency portfolio would decrease C. the Sharpe ratio of the tangency portfolio would remain unchanged D. the stock and bond weight in the tangency portfolio would change E. the stock and bond weight in the tangency portfolio would remain unchanged F. The dollar value of bond in your portfolio would increase G. The dollar value of bond in your portfolio would decrease
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