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07-06-2023
Business

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According to the CAPM, which of the following is false regarding the market portfolio?
1) All securities in the market portfolio are held in proportion to their market values.
2) It includes all risky assets in the world.
3) It is always the minimum-variance portfolio on the efficient frontier.
4) It lies on the efficient frontier.
5) None of the above.
Please explain.

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