Question: 1) Explain the term efficient portfolio. 2)How are the security market line and the capital asset pricing model related? 3)Assume you've drawn the efficient frontier

1) Explain the term efficient portfolio.

2)How are the security market line and the capital asset pricing model related?

3)Assume you've drawn the efficient frontier and the risk-free rate exists. What would be the best investment strategy for investors?

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Answer 1 Efficient Portfolio An efficient portfolio is a portfolio that provides the maximum expected return for a given level of risk or the minimum ... View full answer

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