Answer TRUE or FALSE (10 pts) a) Every investor is aiming for the largest possible portfolio return he/she can achieve over his investment horizon b) Different investors have different risk appetite / risk aversion when it comes to investing capital for the long term c) Investors and Portfolio Managers who act as investor fiduciaries need to be on the same page and agree on specific investment guidelines that govern the client-manager relationship d) Interest rates don't impact portfolio returns e) The CAPM implies that investors require a higher return to hold highly volatile securities f) You can construct a portfolio with beta of .80 by investing 50% of the investment budget in the market portfolio and the remaining 50% in other risky assets g) Asset Allocation where short sales and leverage (borrowing) is allowed can potentially generate risk-adjusted returns potentially higher than the ones of the Tangent (Efficient) Portfolio h) If two assets have one year expected returns of 10% and my borrowing rate is 5%, I would never manage to get a portfolio return higher than 10% by combining these two assets even if borrowing and short selling is allowed i) If two assets have risk of 10% each, I would never manage to get a portfolio risk LOWER than 10% by combining these two assets j) Every asset in the Market (Model) portfolio is efficiently priced (i.e it is represented by a point on the SAL)