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Short Question (SQ.3.) (15%) (a) Explain why the CAPM holds if there exists no truly risk-free asset, Illustrate the minimum variance frontier, the market portfolio,

Short Question (SQ.3.) (15%) (a) 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%)

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