Question: Capital Asset Pricing Model (CAPM) a. Show graphically how two-fund separation occurs under CAPM b. Show and describe how investors maximize utility under this framework.

Capital Asset Pricing Model (CAPM)

a. Show graphically how two-fund separation occurs under CAPM

b. Show and describe how investors maximize utility under this framework.

c. Describe which assets are included in the market portfolio and how is it weighted?

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