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According to the CAPM, all risky assets must have positive risk premium. If a stock lies below the security market line in the CAPM, it

According to the CAPM, all risky assets must have positive risk premium.

If a stock lies below the security market line in the CAPM, it is under valued.

In the CAPM, the proportion invested in the Market portfolio is the same for all investors.

True or False? Explain.

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