The market has taken a steep dive in the last 9 months, and you're evaluating the status of your investment accounts and discussing collective thoughts with your significant other: a) You happen to believe that the market downturn is overdone, and that the economy will rebound strongly. If the CAPM holds, what does this imply about your portfolio allocation? b) Of course, in contrast to your belief above, your significant other believes that the market will continue to decline (the dreaded "W" shaped recession). If the CAPM holds, what does this imply about your (joint) portfolio allocation? "These days in particular, international stocks are too volatile to hold in a diversified portfolio." Discuss. True, False or Uncertain. Since the economic downturn has caused many firms to 'streamline' their production activities, focusing on a single product line, the CAPM is less useful than it once was, when firms had more diversified lines of business