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(e) The CAPM predicts that the expected return on the market portfolio is always greater than the return on the riskless naset. (d) The CAPM

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(e) The CAPM predicts that the expected return on the market portfolio is always greater than the return on the riskless naset. (d) The CAPM predicts that investors demand higher expected rates of return from stocks that have a high (positive) sensitivity to fluctuations in the stock market. (e) An investor who puts $10000 in T-bills and $20000 in the market portfolio will Have A beta of 2.0

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