Question: Know how to derive an efficient portfolio by algebra for the cases: (a) One riskless and one risky asset; (b) Two risky assets; Illustrate in
Know how to derive an efficient portfolio by algebra for the cases: (a) One riskless and one risky asset; (b) Two risky assets; Illustrate in a diagram the cases where the risky assets are uncorrelated, perfectly positively and negatively correlated. (c) Illustrate (using a diagram) how you would construct an efficient portfolio when there are N risky assets and one riskless asset.
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