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The SML Is Valid for ________, and the CML Is

Question 76

Multiple Choice

The SML is valid for ________, and the CML is valid for ________.


A) only individual assets; well-diversified portfolios only
B) only well-diversified portfolios; only individual assets
C) both well-diversified portfolios and individual assets; both well-diversified portfolios and individual assets
D) both well-diversified portfolios and individual assets; well-diversified portfolios only

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