The capital asset pricing model implies that, if the market is efficient and all assets are fairly priced, investors should not invest in the market portfolio as it is too risky. investors should buy the Apple stock as everyone loves Apples products. the most efficient strategy (one that yields the highest expected return for any given level of risk) is to hold a portfolio consisting of the risk free asset and the market portfolio. the most efficient strategy (one that yields the highest expected return for any given level of risk) is to identify positive alpha securities