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The modern portfolio theory justifies why a fund company can service investors with different risk tolerance using the same portfolio. According to the Capital Asset

The modern portfolio theory justifies why a fund company can service investors with different risk tolerance using the same portfolio. According to the Capital Asset Pricing Model, all investors should invest in the optimal risky portfolio and the risk-free asset. Therefore a fund can use the same diversified portfolio to service different investors as it only needs to adjust the asset allocation between the risky portfolio and risk-free asset. True or false?

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