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Asset V's SIM alpha is equal to zero. Which of the following must be true? Asset V was correctly priced according to CAPM over the
Asset V's SIM alpha is equal to zero. Which of the following must be true?
Asset V was correctly priced according to CAPM over the sample period. | ||
Asset V is risk-free. | ||
Asset V's average return over the sample period was equal to the risk-free rate. | ||
Asset V has zero firm-specific risk. |
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