⭐ Important points (exam-critical)
- ⭐Optimal portfolio: tangent of CML to efficient frontier (highest Sharpe).
- ⭐Two-fund separation theorem under CAPM assumptions.
- ⭐Fama-French 3-factor model adds size & value factors to CAPM.
- ⭐Arbitrage Pricing Theory (APT): multiple factor model alternative to CAPM.
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