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In the graph on the answer sheet, please sketch: (a) The market portfolio, if the assumptions of the CAPM hold. (b) The maximum obtainable

In the graph on the answer sheet, please sketch: (a) The market portfolio, if the assumptions of the CAPM hold. (b) The maximum obtainable indifference curve of an investor with mean variance prefer- ences that holds a zero weight in the risk-free asset. (c) An asset with > 0 and variance equal to the market portfolio, if the assumptions of the CAPM hold. +E[R] Rf (R)

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