Please read the question carefully and don't give me a spam. I will give you a very good rate if you can provide a complete answer. Thank you so much!

Short Question (SQ.3.). (15%) Explain why the CAPM holds if there exists no truly risk-free asset. Illustrate the minimum variance frontier, the market portfolio, and the capital market line in this case. (6%) (b) Factor risk premiums can be positive or negative in the APT. Explain the intuition behind a negative factor risk premium. (6%) Short Question (SQ.3.). (15%) Explain why the CAPM holds if there exists no truly risk-free asset. Illustrate the minimum variance frontier, the market portfolio, and the capital market line in this case. (6%) (b) Factor risk premiums can be positive or negative in the APT. Explain the intuition behind a negative factor risk premium. (6%)