Discuss the implications for the mutual fund industry

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A key result of the CAPM is that it implies a unique market portfolio of risky assets and that every investor, regardless of risk preferences, agrees on this portfolio's composition.

Explain, and show graphically, the implications of this result for the optimal investment portfolios of different investors and discuss the implications for the mutual fund industry.

Also comment on the assumptions that underlie this result ?

Reference no: EM131966063

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