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One key conclusion of the Capital Asset Pricing Model is that the value of an asset should be measured by considering both the risk and

One key conclusion of the Capital Asset Pricing Model is that the value of an asset should be measured by considering both the risk and the expected return of the asset, assuming that the asset is held in a well-diversified portfolio. The risk of the asset held in isolation is not relevant under the CAPM.

a. True
b. False

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