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Under the Separation Property of Portfolio Optimization: The Capital Market Line reflects the clients Risk Aversion level Risky portfolios should reflect the Risk Aversion level
Under the Separation Property of Portfolio Optimization:
The Capital Market Line reflects the clients Risk Aversion level | ||
Risky portfolios should reflect the Risk Aversion level for each investor | ||
There is only 1 theoretic optimal Risky portfolio for all investors | ||
The minimum variance point on the Efficient Frontier reflects the optimal Risky portfolio |
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