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Which of the following statements is true? The CAL is all possible combinations of two risky assets. When two assets are perfectly negatively correlated, the
Which of the following statements is true? The CAL is all possible combinations of two risky assets. When two assets are perfectly negatively correlated, the shape of the investment opportunity set is a straight line connecting the two assets in standard deviation - expected return space. Correlation is between -1 and +1. The most efficient CAL goes through the Minimum Variance Portfolio.
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