First step an investor takes when making an investment

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Reference no: EM131553932

What is the first step an investor takes when making an investment decision according to the separation principle?

a. Determining the mix of risky and risk-free assets he/she will hold

b. Quantifying the amount of risk he/she is willing to accept

c. Estimating future inflation and risk-free rates

d. Determining the portfolio of risky assets that he/she will hold

e. Specifying a desired rate of return

Reference no: EM131553932

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