If an Optimal Portfolio of Risky Assets Can Be Identified,why

question 68

Essay

If an optimal portfolio of risky assets can be identified,why should investors mix that portfolio with risk-free securities?

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Definitions:

Subliminal Perception

The process by which stimuli presented below the threshold of conscious awareness influence thoughts, feelings, or actions.

Longest Wavelengths

Refers to the type of electromagnetic waves with the greatest distance between successive crests, typically found in radio waves.

Red Colors

Hue on the visible light spectrum that is associated with warmth, danger, and excitement, often eliciting strong emotions.

Shortest Wavelengths

Refers to light or other waves of the electromagnetic spectrum with the shortest length, typically associated with high energy and frequency, such as gamma rays or X-rays.