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    Portfolio Theory

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    1. Explain each of following:
    a) the efficient frontier
    b) the capital market line
    c) the security market line

    2. Risky assets can be combined to form a risk-less asset. Discuss.

    © BrainMass Inc. brainmass.com April 3, 2020, 3:44 pm ad1c9bdddf
    https://brainmass.com/business/arbitrage-pricing-theory/portfolio-theory-risky-assets-85199

    Solution Preview

    1.Explain each of following:
    a) the efficient frontier
    b) the capital market line
    c) the security market line

    Please see the attached file.

    2.Risky assets can be combined to form a risk-less asset. Discuss.
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    Portfolio ...

    Solution Summary

    The solution explains the efficient frontier, the capital market line, the security market line and risky assets.

    $2.19

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