Question: If the hypothetical equilibrium is achieved based on CAPM model, market portfolio should be the only risky portfolio that all investors hold. Is the above

If the hypothetical equilibrium is achieved based on CAPM model, market portfolio should be the only risky portfolio that all investors hold.

Is the above statement true or false? Give explanations.

and

In a highly competitive financial market, securities are often traded below its intrinsic value in order to encourage trading and attract liquidity.

Is the above statement true or false? Give explanations.

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