Financial Risk Manager Part 1
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The committee overseeing a significant retirement fund is evaluating different investment options using the mean-variance optimization model. Given that the fund can both borrow and lend at the risk-free rate, and aims to invest exclusively in portfolios positioned on the efficient frontier, which of the following statements accurately reflects the committee's target portfolio under the mean-variance model, considering that only two viable risky assets, A and B, are available and the market is in equilibrium?