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Tobin portfolio selection model suers

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Reference no: EM131298763

According to some economists, Tobin's portfolio selection model suers from the following defiencies: (a) it explains the allocation of wealth between assets, but it does not explain the demand for money; (b) it implies that investors view investment in long-term assets as more risky than investment in short-term assets: this, however, is false. Discuss these shortcomings.

Reference no: EM131298763

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