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In the CAPM, investors are characterised by their risk aversion parameter. One of the key results in the CAPM is that all investors identify the

In the CAPM, investors are characterised by their risk aversion parameter. One of the key results in the CAPM is that all investors identify the same portfolio as being the optimal risky portfolio. Explain how this is possible, including required assumptions, if investors have different risk aversion parameters and hence select different optimal portfolios

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