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mark all of the following statements that you believe to be true and leave unmarked those that are false. You will receive partial credit for
mark all of the following statements that you believe to be true and leave unmarked those that are false. You will receive partial credit for this question, i.e., two points for each statement you correctly mark or correctly leave unmarked. 1. According to the CAPM, the tangent portfolio of all investors is identical to the market portfolio because investors have perfect foresight about future expected returns, volatilities, and correlations. 2. A stock's beta is a measure of its exposure to systematic risk relative to the market portfolio. 3. The central equation of the CAPM is: text E end text open parentheses R subscript i close parentheses equals r subscript f plus beta subscript i cross
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