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10. Briefly explain whether investors should expect a higher return from holding portfolio A versus portfolio B under capital asset pricing theory (CAPM). Assume that
10. Briefly explain whether investors should expect a higher return from holding portfolio A versus portfolio B under capital asset pricing theory (CAPM). Assume that both portfolios are fully diversified. Systematic risk (beta) Specific risk for each individual security Portfolio A 1.0 High Portfolio B 1.0 Low
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