Question 4

According to the Capital Asset Pricing Model (CAPM), a security with:

0 / 1 point

An alpha of zero is able to generate a return which greater than the market return.

A positive alpha is considered overpriced, since the security outperforms the market.

An alpha of zero is able to generate a return which is inferior to the market return.

A positive alpha is considered underpriced, since the security outperforms the market.