Question: Please answer True or False for the following: 1. Capital market theory assumes that all investments are not properly priced for their risk levels. 2.

Please answer True or False for the following:

1. Capital market theory assumes that all investments are not properly priced for their risk levels.

2. A portfolios expected return is a weighted average of the returns from risky assets.

3. The capital market line intersects the return axis when graphed.

4. It is possible to diversify away unsystematic risk.

5. It is not possible to diversify away systematic risk.

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