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In CAPM world, investors follow two-fund separation, meaning all investors hold a mixture of: a. Housing and small-cap stocks b. Small-cap stocks and large-cap stocks

In CAPM world, investors follow "two-fund separation", meaning all investors hold a mixture of:

a. Housing and small-cap stocks

b. Small-cap stocks and large-cap stocks

c. Treasury bills and Treasury bonds

d. Treasury bills and the stock market

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