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Consider the following statements. All portfolios on any given Capital Allocation Line will have the same Sharpe ratio assuming borrowing and lending rates are the

Consider the following statements.

All portfolios on any given Capital Allocation Line will have the same Sharpe ratio assuming borrowing and lending rates are the same.

Under the CAPM, the Sharpe ratio of a portfolio on the Capital Market Line will be greater than the Sharpe ratio of all feasible portfolios that are not on the Capital Market Line.

A rational risk-averse investor would not invest in any asset that plots below the efficient frontier.

Which one of the following is correct?

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