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“CONCEPT C H E C K ☞ QUESTION 2 Can the reward-to-variability ratio, S [E (rC) rf] / C, of any combination of the risky asset and the risk-free asset be different from the ratio for the risky asset taken alone, [E (rP) rf] /”
“For this reason, the slope also is called the reward-to-variability ratio.”
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