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(i) Name the main assumptions of the Capital Asset Pricing Model (CAPM) (ii) Explain the theoretical securities market line (SML). Compare it to empirical findings.

(i) Name the main assumptions of the Capital Asset Pricing Model (CAPM) (ii) Explain the theoretical securities market line (SML). Compare it to empirical findings. Use graphs and/or equations to support your answer. Label all axes.

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