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Is the following statement True, False, or Ambiguous? Provide a short justification for your answer (You are evaluated on your justification) (2 Marks): Since investors

Is the following statement True, False, or Ambiguous? Provide a short justification for your answer (You are evaluated on your justification) (2 Marks): Since investors are compensated for holding risk, two securities with the same standard deviation should have the same expected return.

Explain why in a highly competitive market all stocks should plot on the same security market line. (3 Marks)

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