Think of a world without the opportunity of risk-free borrowing or lending. You can only hold money,

Question:

Think of a world without the opportunity of risk-free borrowing or lending. You can only hold money, which means saving is permitted, or invest in a portfolio of risky assets. Show that in this world the market portfolio is given by.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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