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a) Do the weights or components of the market portfolio change as the risk-free rate changes? Explain (a diagram may be helpful) (2 marks) b)

a) Do the weights or components of the market portfolio change as the risk-free rate changes? Explain (a diagram may be helpful) (2 marks)

b) Describe a risk which is not priced by the CAPM? (1 marks) Explain why bearing this risk offer no return in the CAPM? (1 marks)

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