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1)When is there an opportunity to buy? Explain why. a. The assets location in E vs. Std.dev is above capital allocation line b. The assets

1)When is there an opportunity to buy? Explain why.

a. The assets location in E vs. Std.dev is above capital allocation line

b. The assets location in E vs. Std.dev is below capital allocation line

2) Describe effficient market hyphothesis. In a transparent market where everyone does logical decisions do we expect assets far from capital allocation line in long term? Explain why

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