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1. The risk-free asset is positively / negatively / uncorrelated with any other securities. Which is it? 2. True or False: Due to the risk-free

1. The risk-free asset is positively / negatively / uncorrelated with any other securities. Which is it?

2. True or False: Due to the risk-free assets correlation with other securities or lack thereof, the Capital Market Line (CML) will be negatively sloped.

3. The CML has / does not have a vertical intercept. Which is it?

4. True or False: Returns along the CML are weighted averages of the risk-free rate and the market portfolio.

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