Finance School of management Intuitive of capm All the investors will allocate their investments between the riskless asset and the same tangent portfolio In equilibrium, the aggregate demand for each security is equal to its supply The only way the asset market can clear is if the relative proportions of risky assets in tangent portfolio are the proportions in which they are valued in the market place, i. e. the market portfolio uesTc6 Finance School of Management Intuitive of CAPM u All the investors will allocate their investments between the riskless asset and the same tangent portfolio u In equilibrium, the aggregate demand for each security is equal to its supply u The only way the asset market can clear is if the relative proportions of risky assets in tangent portfolio are the proportions in which they are valued in the market place, i.e. the market portfolio