1. Assume that the CAPM holds. (15 points) 1.1. Indicate whether the following statements are true or false based on what you can infer from the graph above without scaling it. (i). The correlation between returns on Security k and the market portfolio is +1. (ii). All of the risk of Security i as measured by the variance of its returns is diversifiable. (iii). j2>j2 (iv). kM>kM (v). Security j has no systematic risk. (vi). ama>M (vii). (EqRf)/(EMRf)=M/q. (viii). jMjM (x). jM=jM (xi). amj2 (iv). kM>kM (v). Security j has no systematic risk. (vi). ama>M (vii). (EqRf)/(EMRf)=M/q. (viii). jMjM (x). jM=jM (xi). am