Question: CAPM can trace its development from Portfolio Theory (i.e. the two fund separation theorem) which shows that the process of optimizing the return/risk ratio will

CAPM can trace its development from Portfolio Theory (i.e. the two fund separation theorem) which shows that the process of optimizing the return/risk ratio will ensure that every investor will invest in a portfolio of risk free asset and the risky market portfolio (also known as the two fund separation theorem).Explain and illustrate why no one will invest in other risky portfolios other than the market portfolio.What is the special property of this market portfolio?(Hint:a graph will help your explanation and discussion).(No more than 4 pages).

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