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Question 7 According to CAPM, which of the following statements regarding the given security market line (SML) is false? 20 A SML SBUX 15 B

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Question 7 According to CAPM, which of the following statements regarding the given security market line (SML) is false? 20 A SML SBUX 15 B The alpha of Pepsi (PEP) is -1% The alpha of the market portfolio is 0% The expected excess market return is 10% The alpha of Starbucks (SBUX) is 1.5% C D E(r)% 10 5.5 PEP 3 0 0 0.5 1 1.5 2 B

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