Corner Portfolio and Disallowed Asset Class one, required, guidance, return

AnalystForum

What if one of the two corner portfolios adjacent to the required return have disallowed assets? Anybody know of guidance re: this issue? Seems like that could be a tricky way CFAI could get us. Thanks.

cityboy

If disallowed automatically ignore.

If the required return was 6% and all portfolio except one that was yielding 11% were disallowed, it would involve a combination of lending at RFR and 11% portfolio I would assume.