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Unformatted text preview: the sea I can construct even worse portfolios. ..) I can also get outside the frontier of the parallelogram defined by the risk/return characteristics of the individual stocks. .. Introducing lending and borrowing: Choose the portfolio S that just touches the line that goes through the riskfree-rate point and lies entirely to one side of the feasible portfolio set. Then borrow (and lend) until you get to the risk-return characteristics you want. .. Capital asset pricing model. .. ÿ...
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This note was uploaded on 11/10/2011 for the course GEB GEB1011 taught by Professor Henn during the Fall '10 term at Broward College.
- Fall '10