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Text : 2.3 Portfolio Choice CHARACTERISTICS OF FINANCIAL ASSETS Portfolio choice involves decisions about the way we want to hold our assets (or to structure our liabilities). It is a fancy term for something we do all the time. For example, a yard sale is an example of portfolio adjustment. People holding a yard sale are attempting to convert assets in the form clothing and household items into cash. They are not changing the amount of assets they have, but rather the form in which they hold them. Text : From a macroeconomic perspective, most important cases of port
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