According to Portfolio Theory all the following statements are true when there is a riskless asset except:
A) The optimal risky asset portfolio maximizes the Sharpe Measure.
B) The optimal risky asset portfolio minimizes the risk per unit of return risk premium.
C) The optimal risky asset portfolio should be bought even by investors who do not want to bear much risk.
D) The optimal risky asset portfolio should always be mixed with investments in riskless bonds.
Correct Answer:
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