Question: I understand that there is a direct relationship between risk and expected return. Because I am a long-term investor and less risk-averse than other investors,
"I understand that there is a direct relationship between risk and expected return. Because I am a long-term investor and less risk-averse than other investors, I will invest all of my funds in a single risky asset." Critically evaluate the above statement. Additionally, offer an alternative strategy that should offer higher returns for this investor without increasing risk.
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