Does anyone have any background on this? Why did it trip everyone up so badly?? Did they actually expect you to have memorized the extremely ugly formula for deriving the optimal risky portfolio composed of 2 risky assets when there is a risk-free asset? (71-4 in CFAI text)??
CFAI text says you don’t have to know the forumla. Suggest you focus on the theory behind the weights and why active PM is useful even in times of equilibrium