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One of the main assumptions of the Capital Market Theory is that all investors are on the Efficient Frontier Curve (EFC) of the portfolio theory,
One of the main assumptions of the Capital Market Theory is that all investors are on the Efficient Frontier Curve (EFC) of the portfolio theory, yet when you plotted all your investments (including the two portfolios) in the course project, they were not on the EFC. What does this imply for the application of the CAPM? Please explain.
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