Global minimum variance portfolio of risky assets

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True or False. Briefly explain your answers

1. In the absence of a riskless asset, an infinitely risk averse individual will choose to hold the global minimum variance portfolio of risky assets.

2. According to the CAPM, all assets have expected returns above the risk-free rate.

3. The benefits of diversification are very large for portfolios that already contain at least 100 stocks.

4. The slope of a capital allocation line for a particular asset is the sharpe ratio of that asset.

Reference no: EM133033884

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