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What is the Capital Asset Pricing Model (CAPM) and how it is used to evaluate whether to invest in a company? Further, your client requires

What is the Capital Asset Pricing Model (CAPM) and how it is used to evaluate whether to invest in a company? Further, your client requires a detailed discussion on how diversification is achieved from a theoretical perspective and would also like an example of how diversification is accomplished from investment in different companies.

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