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Q 2 . CAPM suggests that the higher beta is for any security, the higher must be its equilibrium return. A group of students is

image text in transcribed Q 2 . CAPM suggests that the higher beta is for any security, the higher must be its equilibrium return. A group of students is first exposed to the CAPM, one or more students will find a high-beta stock that last year produced a smaller return than lowbeta stocks. How are you explaining this within CAPM framework

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