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corie corie
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6 years ago
Suppose an investor equally allocates their wealth between a risk-free asset and a risky asset.  If the MRS of the current allocation is less than the slope of the budget line, then the investor should:
A) shift more of their wealth to the risky asset.
B) shift more of their wealth to the risk-free asset.
C) keep the same asset allocation.
D) We do not have enough information to answer this question.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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Bart_argBart_arg
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#1
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6 years ago
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corie Author
wrote...

6 years ago
Good timing, thanks!
jamesbove
wrote...

Yesterday
Smart ... Thanks!
zsc999
wrote...

2 hours ago
Helped a lot
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