Question: Define the following terms, using graphs or equations where appropriate: a. Portfolio; feasible set; efficient portfolio; efficient frontier b. Indifference curve; optimal portfolio c. Capital

Define the following terms, using graphs or equations where appropriate:

a. Portfolio; feasible set; efficient portfolio; efficient frontier

b. Indifference curve; optimal portfolio

c. Capital Asset Pricing Model (CAPM); Capital Market Line (CML)

d. Characteristic line; beta coefficient (b)

e. Arbitrage Pricing Theory (APT); Fama-French three-factor model; behavioral finance

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