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Explain, with the aids of a graph, the term efficient portfolios and how to achieve them. (5 marks) Critically explain the term market portfolio. (5

Explain, with the aids of a graph, the term efficient portfolios and how to achieve them. (5 marks)
Critically explain the term market portfolio. (5 marks)
Critically explain, including the use of a graph, the security market line (SML). (5 marks)
If there is a stock which is substantially overvalued, where it should plot relatively to the SML? Critically explain what should happen to that stock in equilibrium if a competitive market. (5 marks)

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