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Separation of Duties and General Control Procedures.  You are engaged to examine the financial statements of Fenmore, Inc. which has its own computer installation. During the preliminary understanding phase of your study of Fenmore’s internal control, you found that Fenmore lacked proper separation of the...

Please consider all that we have learned thus far regarding the impact of diversification, risk-free securities, and market premiums.  With that in mind, please describe how adding a risk-free security to modern portfolio theory allows investors to do better than the efficient frontier.  Additionally, explain...