The Sharpe version of the CAPM results in the principle of two fund separation Every individual holds the same portfolio of risky assets, namely, the market portfolio Therefore individuals will be indifferent to redistribution effects caused by imperfect me first rules True or false Why ...

If we live in a world where markets are perfect then twofund separa ...

The Sharpe version of the CAPM results in the principle of two-fund separation. Every individual holds the

Question:

The Sharpe version of the CAPM results in the principle of two-fund separation. Every individual holds the same of risky assets, namely, the market Therefore individuals will be indifferent to redistribution effects caused by imperfect "me-first" rules. True or false? Why?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...