Assume a stock experiences an actual return that is above the security market line. An analyst can safely conclude that the stock has: Multiple Choice more systematic risk than the overall market. more risk than that warranted CAPM. a higher return than expected for the level of risk assumed. less systematic risk than the overall market. a return equivalent to the level of risk assumed.

Assume a stock expetiences an actual return that is above the security market line. An analyst can safely conclude that the stock has Multiole Choice more systematic risk than the overall market. moce isk then that warrented by CAPM. a higher return than expected for the level of risk assumed lesk systematic risk than the overall morket a tetum equivalent to the level of nisk assumed