Oil Smith, an investment student, argued, A security with a positive standard deviation must have an expected return greater than the riskfree rate Otherwise, why would anyone be willing to hold the security Based on the CAPM is Oil 's statement correct Why ...

Oil is incorrect The CAPM implies that it is possible for a security to have a positive st ...

Oil Smith, an investment student, argued, A security with a positive standard deviation must have an expected

Question:

Oil Smith, an investment student, argued, "A security with a positive standard deviation must have an greater than the riskfree rate. Otherwise, why would anyone be willing to hold the security?" Based on the CAPM is Oil's statement correct? Why? Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...