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Which of the following is an example of an endogenous cost to a firm?
Capital Allocation Line
A line on a graph that shows the risk-reward ratio of portfolios that combine a risk-free asset and a risky portfolio.
Optimal Risky Portfolio
An investment portfolio that offers the highest expected return for a specific level of risk.
Risk-free Rate
The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.
Lend
To provide money or resources to another party with the expectation of future repayment.
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