Question: Also explain why briefly a 7. Choose a false statement and give explanation. a. Optimal risky portfolio is the best combination of variance minimizing risky

Also explain why briefly a 7. Choose a false statement and give Also explain why briefly

a 7. Choose a false statement and give explanation. a. Optimal risky portfolio is the best combination of variance minimizing risky asset portfolio with risk free asset. b. Optimal weight can exceed 1. c. Non-diversifiable risk is common risk factor to whole economy d. Optimal risky portfolio risk depends on covariance between returns of 2 risky assets

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