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A) Empirically, the CAPM fails because for most assets the amount of idiosyncratic variance is much higher than the amount of systematic variance B) According
A) Empirically, the CAPM fails because for most assets the amount of idiosyncratic variance is much higher than the amount of systematic variance
B) According to the CAPM, all investors should hold the same two assets in equilibrium, but individual allocations between these two assets may still differ.
For each, explain whether each statement is true, false, or uncertain
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