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According to the capital asset pricing model, which one of the following statements is right? A. If a securitys expected return lies above the SML,
According to the capital asset pricing model, which one of the following statements is right?
A. If a securitys expected return lies above the SML, then it is overpriced.
B. A security with a positive beta is considered overpriced
C. None of the above/below
D. If a securitys expected return lies below the SML, then it is underpriced
E. A security with a negative alpha is considered overpriced.
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