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Ana Sofia invested her money in Vanity Fair three years ago. When she plots the security market line she notes that Vanity Fair lies above
Ana Sofia invested her money in Vanity Fair three years ago. When she plots the security market line she notes that Vanity Fair lies above the line. This means that her investment in Vanity Fair has:
A) More systematic risk than the overall market
B) Less systematic risk than the overall market
C) A return equivalent to the level of risk assumed
D) More risk than warranted by CAPM
E) A higher return than expected for the level of risk assumed
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