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2. Evaluate Figure 1 below and answer the subsequent questions E(R) Capital Market Line Market Portfolio RE OM i) According to the capital asset pricing

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2. Evaluate Figure 1 below and answer the subsequent questions E(R) Capital Market Line Market Portfolio RE OM i) According to the capital asset pricing model, the individual investor's equilibrium utility maximization is depicted below. Briefly explain how an investor's can maximize utility at point A as well as point B. [4] [4] ii) Explain the risk-return characteristics of the market portfolio in the figure above. the risk

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