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According to the Capital Asset Pricing Model, the introduction of a risk-free asset renders the efficient frontier of efficient portfolios linear. How many portfolios of risky assets (portfolios of only risky assets) lie on the resulting Capital Market Line?

A. Two portfolios of risky assets lie on the Capital Market Line.

B. One portfolio of risky assets lies on the Capital Market Line.

C. ALL portfolios of risky assets must lie on the Capital Market Line.

D. The number cannot be determined.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91609387

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