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Which of the following is a correct result of CAPM? In equilibrium: 1. Not all investors choose to hold a broad market portfolio, M. II.

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Which of the following is a correct result of CAPM? In equilibrium: 1. Not all investors choose to hold a broad market portfolio, M. II. Mlies on the efficient frontier but not necessarily the optimal risky portfolio. III. The market risk premium is proportional to investors risk aversion. IV. The risk premium on the individual assets is directly related to the market risk premium. IV 1, 111, and IV III and IV

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