In the CAPM is there any way to identify the investors who are more risk averse? Explain.

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In the CAPM is there any way to identify the investors who are more risk averse? Explain. How would your answer change if there were not a riskless asset?

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Financial Theory and Corporate Policy

ISBN: 978-0321127211

4th edition

Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri

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Question Posted: Apr 26, 2016 08:26 AM

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In the CAPM is there any way to identify the investors who are more risk averse? Explain.

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Yes Given a riskless asset twofund separation obtains and if you can observe any one of the ...View the full answer

Financial Theory and Corporate Policy

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