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The Johannesburg Stock exchange (JSE) consists of all listed companies in South Africa. Suppose the JSE has only 12 million investors. Also assume that an

The Johannesburg Stock exchange (JSE) consists of all listed companies in South Africa. Suppose the JSE has only 12 million investors. Also assume that an investor holds 5% of shares in Capitec Bank. NB (Capitec is listed on the JSE)

Required:

a. Apply the logic of the key result of the CAPM to explain the JSE as a market of risky assets.

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