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When choosing the best point of the POS (the curved line connecting two possible assets you can invest in) you need to find the point
When choosing the best point of the POS (the curved line connecting two possible assets you can invest in) you need to find the point that:
A) Has the greatest difference between its return and the risk free rate, thus leading to the best return | ||
B) You must solve for the optimal y allocation in order to find the best point on the POS | ||
C) The point with the lowest standard deviation | ||
D) The point with the greatest Sharpe ratio |
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