When Wealth Is Shifted from the Risky Portfolio to the Risk-Free

question 22

Multiple Choice

When wealth is shifted from the risky portfolio to the risk-free asset,what happens to the relative proportions of the various risky assets within the risky portfolio?

• A) They all decrease.
• B) Some increase and some decrease.
• C) They all increase.
• D) They are not changed.
• E) The answer depends on the specific circumstances.

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