Question: Draw a graph that represents an opportunity set for a two-asset combination. Indicate four points on the graph as follows: (1) the minimum variance portfolio.
Draw a graph that represents an opportunity set for a two-asset combination. Indicate four points on the graph as follows:
(1) the minimum variance portfolio.
(2) point (A) which represents the best return to risk combination
(3) point (B) which provides the same return but with more risk than point (A)
(4) point (C) which has the same risk but a lower return than point (A).
(5) indicate the efficient frontier.
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