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Describe what is meant by the Capital Allocation Line and how it is used in portfolio construction. (10 marks) What are the potential drawbacks of
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Describe what is meant by the Capital Allocation Line and how it is used in portfolio construction. (10 marks)
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What are the potential drawbacks of using standard deviation to measure the risk of an asset, and what other measures could be employed?(10 marks)
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Describe what is meant by efficient markets, and what factors may cause markets to deviate from efficiency.(10 marks)
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