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The CAPM posits that, in equilibrium, the portfolio with the highest Sharpe ratio is: a) A portfolio that lies on the inside of the investment

The CAPM posits that, in equilibrium, the portfolio with the highest Sharpe ratio is:

a) A portfolio that lies on the inside of the investment opportunity set

b) The market portfolio that represents the supply of all risky assets

c) Any portfolio that lies on the Capital Market Line

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