Process of optimum portfolio selection and portfolio theory

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Reference no: EM131622347

Explain in as much detail as possible the process of optimum portfolio selection and portfolio theory in general. In your answer, be sure to describe the following items:

(a) the key variables that must be considered in the optimum portfolio selection

(b) how the efficient set is derived

(c) why the optimal portfolio differs for each individual

(d) how the risk-free asset and margin purchases factor into the optimum portfolio selection

Reference no: EM131622347

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