Suppose investor A invests $300,000 in a 70%/30%; and investor B invests $300,000 in a 90%/10% according to the way in which you have stated in 1A) above in the context of CAPM, would you say they both have similar exposure (similar % of $1 exposure to IBM if it is in the risky fund), to the same risky assets that form the market portfolio?

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Investor A invested 300000 in a portfolio that has 70 allocated to risky assets and 30 allocated to ... View the full answer