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8. Which of the following statement is correct? Overpriced stocks should plot below the Security Market Line APT assumes that investors are rational mean-variance optimizers

8.

Which of the following statement is correct?

Overpriced stocks should plot below the Security Market Line

APT assumes that investors are rational mean-variance optimizers

In an economy that has four risky assets and a risk-free asset, the minimum-variance portfolio is the best plausible portfolio

CAPM assumes how stock price should move from day to day

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