Question: Indicate whether the statements below are true or false. If the answer is true, explain why it is true. If the answer is false, explain

Indicate whether the statements below are true or false. If the answer is true, explain why it is true. If the answer is false, explain why it is false. Feel free to give examples or counter-examples.

The CAPM establishes that the expected return [(p)] of any portfolio is linearly related to its standard deviation (p) ( is linearly related to if we can write = + for some constants and ).

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