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,TheoptimalriskyportfolioisfoundatthepointwheretheCAListangenttotheefficientfrontier.Thisassetweightcombinationgivesthebestrisk-to- ...,Wewillconsidetheproblemintwosteps.1.Oneriskfreeassetandoneriskyasset.2.Oneriskfreeassetandmultipleriskyassets....
Capital Allocation Line (CAL) and Optimal Portfolio
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TheoptimalriskyportfolioisfoundatthepointwheretheCAListangenttotheefficientfrontier.Thisassetweightcombinationgivesthebestrisk-to- ...
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