How is the asset allocation

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Question: In applying the Portfolio Theory to model investors' asset allocation decisions, basic assumptions are made in relation to the individual investors - briefly explain these assumptions. Based on the Portfolio Theory, how is the asset allocation (i.e. the risky portfolio invested) determined for each individual investor on the graph? (Note: you only need to explain in words, it is not required to draw the graph)

Reference no: EM133223752

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