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CAPM postulates that the Beta of investment is a measure of how much risk the investment will add to a portfolio that looks like the

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CAPM postulates that the Beta of investment is a measure of how much risk the investment will add to a portfolio that looks like the overall theoretical market. If an investment is riskier than the market, it will have a beta greater than one. If an investment has a beta of less than one, the formula assumes it will reduce the risk of a portfolio. How could you reduce risk to your overall investment portfolio? Discuss by providing some examples

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