2 points All portfolios on the capital allocation line offers the same utility to a...
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2 points All portfolios on the capital allocation line offers the same utility to a risk averse investor. * True False 2 points A pair of perfectly negatively correlated risky assets in a portfolio may offer just the risk-free rate of return.* True False The lower the correlation between risky assets, the lower the variance will 2 points be on the minimum variance portfolio.* True False Given the capital allocation line, an investor's optimal complete portfolio is 2 points the portfolio that minimizes her risk. * True False 2 points Other things equal, diversification is most effective when securities' returns are uncorrelated.* True False
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