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Share Market & Risk and Return a) What is the purpose of CAPM? b) What are the assumptions of CAPM and are they reasonable? c)

  1. Share Market & Risk and Return

  2. a) What is the purpose of CAPM?

  3. b) What are the assumptions of CAPM and are they reasonable?

  4. c) How does portfolio diversification relates to the CAPM?

  5. d) How do we proxy for systematic risk?

  6. e) What is the outcome of CAPM?

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