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Berk and DeMarzo (2020) indicate that With perfect capital markets, financial transactions neither add nor destroy value, but instead represent a repackaging of risk (and

Berk and DeMarzo (2020) indicate that "With perfect capital markets, financial transactions neither add nor destroy value, but instead represent a repackaging of risk (and therefore return)" (p. 515). Outline the general ideas embedded in the Miller and Modigliani propositions I and II and defend them but highlight any noteworthy caveats. Include at least two citations that support your response.

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