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rue or false) Suppose the CAPM holds. Suppose security X has a beta of 2 while security Y has a beta of 1. Then, assuming

  1. rue or false) Suppose the CAPM holds. Suppose security X has a beta of 2 while security Y has a beta of 1. Then, assuming that the market risk premium (E(Rm) rf ) is positive, X should have a higher expected return than Y.

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