Suppose that you are in the capital asset model with N > 2 stocks and a risk free asset. You are not able to purchase the risk-free asset directly, but you are able to enter short or long positions in two distinct portfolios a = (a1,.. ...,an) and b = (b1, ..., bn), both of which lie along the market line. Show that you can reproduce the risk-free asset from a combined position in these two portfolios. This result is sometimes known as the Two Mutual Fund theorem. Hint: every portfolio on the market line has a special relationship to the market portfolio (tangency portfolio). Suppose that you are in the capital asset model with N > 2 stocks and a risk free asset. You are not able to purchase the risk-free asset directly, but you are able to enter short or long positions in two distinct portfolios a = (a1,.. ...,an) and b = (b1, ..., bn), both of which lie along the market line. Show that you can reproduce the risk-free asset from a combined position in these two portfolios. This result is sometimes known as the Two Mutual Fund theorem. Hint: every portfolio on the market line has a special relationship to the market portfolio (tangency portfolio)