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Based upon the Capital Asset Pricing Model, an asset wjich has more systematic risk that the market: Will earn a rate of return that is
Based upon the Capital Asset Pricing Model, an asset wjich has more systematic risk that the market:
Will earn a rate of return that is greater than the risk-free rate but less that the market rate. | ||
Will have a beta greater than 0 but less than 1. | ||
should have a reward-to-risk ratio which is greater than that of the market. | ||
Should earn a rate of return which places it on the security market line. |
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