Question: 1 Question 1 (3 points) Use a graph depicting the Capital Asset Pricing Model (CAPM). Reflecting on this graph, characterize the market portfolio indicating coordinates.
1 Question 1 (3 points) Use a graph depicting the Capital Asset Pricing Model (CAPM). Reflecting on this graph, characterize the market portfolio indicating coordinates. With reference to the graphical version of the CAPM, how would you depict a stock with positive alpha, and a stock having negative alpha. State the logic for your answer regarding the two stocks
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