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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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