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Answer whether each of the following statements is correct and explain your argument. (a) According to CAPM, the expected return of a risky asset is

image text in transcribed Answer whether each of the following statements is correct and explain your argument. (a) According to CAPM, the expected return of a risky asset is larger than the risk free rate. (b) According to CAPM, the expected return of a risky asset increases with its variance

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