In a portfolio of many securities, all having positive correlation with each other, is it possible for

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In a portfolio of many securities, all having positive correlation with each other, is it possible for the minimum variance portfolio to have zero risk? What happens to the efficient frontier when a risk-free asset exists?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:01 AM

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In a portfolio of many securities, all having positive correlation with each other, is it possible for

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No it is not possible for the minimum variance portfolio to have zero risk in a portfolio of many securities with positive correlation The reason is t...View the full answer

Corporate Finance

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