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Are the following statements true or false? Explain. ( a ) Shares with a beta of zero o er an expected rate of return of
Are the following statements true or false? Explain.
a Shares with a beta of zero oer an expected rate of return of zero.
b TheCAPMimpliesthatinvestorsrequireahigherreturntoholdhighlyvolatile securities
c You can construct a portfolio with a beta of by investing of the budget in Tnotes the riskfree asset and the remainder in the market portfolio.
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