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    Millennium Investments (MI), an investment advisory firm, relies on mean-variance analysis to advise its clients. Mi's advisors make asset allocation recommendations by selecting the mix of assets along the capital allocation line that is most appropriate for each client.
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    Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
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    Highest expected ;Percentage invested
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    Answer: B
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    Explanation/Reference:
    Explanation:
    The highest returns for each level of risk are provided along the capital market line:

    The appropriate weighring can be determined by recalling the formula for the standard deviation of an investment that combines a risky asset (i.e., the MI-5000) and a risk-free a

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