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Question 1 (7 points) Which of the following statements is correct? The security market line depicts a security's expected return as a function of its

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Question 1 (7 points) Which of the following statements is correct? The security market line depicts a security's expected return as a function of its standard deviation Stocks with a beta of zero offer an expected rate of return of zero underpriced securities plot above the SML Investors' complete portfolio does not depend on their risk aversion

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