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Explain Following Assumptions (1)There is perfect competition and no single investor can influence prices, with no transactions costs, involved. Explain this assumption in reference as

Explain Following Assumptions

(1)There is perfect competition and no single investor can influence prices, with no transactions costs, involved. Explain this assumption in reference as how it helps in the Modern Portfolio Theory. (2) No transactions costs or taxes. Explain this assumption in reference as how it helps in the Modern Portfolio Theory.

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