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Suppose there are 2 risky assets. One offers a higher return than the other, but it also has a higher standard deviation. Will one of these assets always lie on the efficient frontier? Will one of them always be inefficient if held alone?

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The expert examines the risk assets. The efficient frontier are determined.

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It is not necessary that one of these assets lie on the efficient frontier. Both can lie on the efficient frontier, only one can or none of these may lie on the efficient frontier. It depends on the expected ...

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