Derive and explain the capital market line, Other Management

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QUESTION

(a) Derive and explain the Capital Market Line. Make and state all necessary assumptions

(b) Explain clearly how you would test for-

(i) the size effect

(ii) the January effect and

(iii) the Contrarian Investment Strategy (CIS) on the Stock Exchange of Mauritius. What explanations have been put forward to explain these anomalies


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