Portfolio Theory and CAPM

Portfolio Theory and CAPM

(a) Explain the following terms in the context of portfolio theory and the CAPM using diagrams where necessary

1. Mean Variance Efficient Portfolio
2. Market Efficient Frontier
3. Tangent Efficient Portfolio
4. Capital Market Line
5. Arbitrage Pricing Theory

(b) “The greater number of securities in the portfolio the lower the risk.’ Is the statement true or false? Using a graph  explain why?