18. Oil Smith, an investments student, argued, A security with a positive standard deviation must have an

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18. Oil Smith, an investments 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?" On the basis of the CAPM, is Oil's statement correct? Why?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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