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TRUE or False, add a brief explanation 1/ All investors are maximizing the expected return subject to not exceeding some standard deviation they are willing

TRUE or False, add a brief explanation

1/ All investors are maximizing the expected return subject to not exceeding some standard deviation they are willing to tolerate. Asset A has a lower Sharpe ratio and a higher variance than Asset B. Statement: Some investors might still invest some of their wealth into Asset A.

2/ CAPM holds. Statement: If the beta of an asset is 0, the asset must be a risk-free asset.

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