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Suppose that McDonalds has a beta of 1. Your study-buddy argues that under the CAPM, investing only in McDonalds equity is every bit as good

Suppose that McDonald’s has a beta of 1. Your study-buddy argues that under the CAPM, investing only in McDonald’s equity is every bit as good as investing in the market portfolio. Do you agree or disagree with your study-buddy? Briefly explain your answer.

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