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Discuss the relevant features of a portfolio that lies on the CML. Discuss the relevant features of a portfolio that lies below the CML. Be
Discuss the relevant features of a portfolio that lies on the CML. Discuss the relevant features of a portfolio that lies below the CML. Be sure that you discussion includes an explanation of the types of risk involved in both portfolios. Now discuss a financial entity that falls on the SML and one that falls below the SML. What happens to these two positions in equilibrium?
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