QUESTION 9 Investors can form complete portfolios out of 2 assets: a T-bill and a risky portfolio P. Tom is more risk averse than Mary. If Tom's optimal complete portfolio has 50% invested in P, Mary's optimal complete portfolio will have O 50% invested in P O 100% invested in the T-bill O more than 50% invested in P O 30% invested in P

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 16P
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QUESTION 9
Investors can form complete portfolios out of 2 assets: a T-bill and a risky portfolio P. Tom is more risk averse than Mary. If Tom's
optimal complete portfolio has 50% invested in P. Mary's optimal complete portfolio will have
50% invested in P
O 100% invested in the T-bill
O more than 50% invested in P
O 30% invested in P
Transcribed Image Text:QUESTION 9 Investors can form complete portfolios out of 2 assets: a T-bill and a risky portfolio P. Tom is more risk averse than Mary. If Tom's optimal complete portfolio has 50% invested in P. Mary's optimal complete portfolio will have 50% invested in P O 100% invested in the T-bill O more than 50% invested in P O 30% invested in P
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