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Are the following statements true or false: I. Based on the Capital Asset Pricing Model, a stock with a beta of zero should earn the
Are the following statements true or false:
I. Based on the Capital Asset Pricing Model, a stock with a beta of zero should earn the riskfree return.
II Based on the Capital Asset Pricing Model, a stock with a beta of one should earn a return equal to the riskfree return plus the expected return on the market.
A Statement I is true and statement II is false
B Statement I is false and statement II is true
C Both statements are true
D Both statements are false
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