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1) What determines which portfolio an investor selects on the efficient frontier? 2) How does capital market theory extend Markowitz portfolio theory with the addition

1) What determines which portfolio an investor selects on the efficient frontier?

2) How does capital market theory extend Markowitz portfolio theory with the addition of a risk-free asset?

3) What is the capital market line (CML), and how does it enhance our understanding of the relationship between risk and expected return?

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