Question: T/F The Capital Asset Pricing Model (CAPM) is derived directly from the condition that the market portfolio is a point on the edge of the

T/F

The Capital Asset Pricing Model (CAPM) is derived directly from the condition that the market portfolio is a point on the edge of the feasible region that is tangent to the capital market line.

T/F

It follows directly from the Capital Asset Pricing Model (CAPM) that a risky asset that is uncorrelated with the market portfolio ( = 0) will have an expected rate of return equal to the risk-free rate.

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