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Question 6 (2 points) Which of the following statements is NOT true about the CAPM Question 6 options: It prices both firm specific and market

Question 6 (2 points)

Which of the following statements is NOT true about the CAPM

Question 6 options:

It prices both firm specific and market risk

It relates the risk measure of a firm to an expected rate of return

It assumes that there are no transaction costs to trading

The market portfolio used in the CAPM cannot be estimated precisely

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