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7. Which of the following statement is correct? In a single-index model, the return of a stock is partially determined by firm-specific news Under CAPM,
7.
Which of the following statement is correct?
In a single-index model, the return of a stock is partially determined by firm-specific news | ||
Under CAPM, it is not possible to construct a portfolio that has a higher expected return than the market portfolio | ||
Under CAPM, there are assets that can only be traded by a fraction of investors | ||
There is no arbitrage opportunity is an assumption of CAPM |
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