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Discuss the problems with empirically testing

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Reference no: EM133062723

Question 1: Briefly explains each of the following terms:

i. e cient frontier

ii. feasible region

iii. security market line

iv. market risk premium.

Question 2: Explain why, under the CAPM framework, the standard deviation of an asset's returns is not a good measure of risk.

Question 3: Demonstrate how the capital market line can be identified by the introduction of a risk-free asset.

Question 4: Discuss the problems with empirically testing the Capital Asset Pricing Model.

Reference no: EM133062723

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