Suppose that your level of risk aversion decreased as you grew richer In a world of riskfree borrowing and lending, how would your optimal portfolio change Would the types of risky securities you hold change Explain with words and graphs ...

Your optimal risky portfolio would not change assuming the feasible investment opportu ...

Suppose that your level of risk aversion decreased as you grew richer. In a world of riskfree

Question:

Suppose that your level of risk aversion decreased as you grew richer. In a world of riskfree borrowing and lending, how would your optimal change? Would the types of risky securities you hold change? Explain with words and graphs.
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...