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1. Write the CAPM equation and explain why beta (i.e. not the standard deviation) is an important component of the CAPM theory. 2. When minimizing

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1. Write the CAPM equation and explain why beta (i.e. not the standard deviation) is an important component of the CAPM theory. 2. When minimizing risk in your portfolio, you are looking for financial assets with negative correlation. Why would that be the case

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