Market portfolio consists of only two risky financial assets

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Consider a market portfolio consists of only two risky financial assets. Highlight the contribution of each risky asset to the total risk of the market portfolio. Consider now a more general framework in which the market portfolio consists of n securities. Highlight the contribution of a specific security, let us say I (where I is therefore a number 1 and n) to the total risk of the market portfolio.

Reference no: EM131539327

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