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The capital market line: 1 and the characteristic line are two terms describing the same function. 2 intersects the feasible set at its midpoint. 3

The capital market line:

1 and the characteristic line are two terms describing the same function.

2 intersects the feasible set at its midpoint.

3 has a vertical intercept at the risk-free rate of return.

4 has a horizontal intercept at the market beta.

5 lies tangent to the opportunity set at its minimum point.

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