q12

Which of the following statements is NOT correct? Market risk can be diversified away by holding a well-diversified portfolio W a security return plots betow the SML, it is overpriced Firm-specific risk can be diversiffed away by holding a well-diversified portfolio Hi trecuity's return piots sbove the SML, it is underpriced The required rate of return based on CAPM is the equilibrium required rate of return thut the securify hoult be offerin