1) CAPM says that the expected return of an asset is the risk-free rate of...
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Finance
1) CAPM says that the expected return of an asset is the risk-free rate of return, plus the product of the equity risk premium multiplied by the beta of that specific security. Please expand and explain.
2) Why are informational efficiency and efficient markets critical to MPT?
3) What are index funds? What is the relationship to Modern Portfolio Theory?
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