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State whether the following statements are true or false. E. Investors demand higher expected rates of return from stocks with returns that are very sensitive
State whether the following statements are true or false.
E. Investors demand higher expected rates of return from stocks with returns that are very sensitive to fluctuations in the stock market. |
F. The CAPM implies that if you could find an investment with a negative beta, its expected return would be less than the interest rate. |
G. If a stock lies below the security market line, it is undervalued. |
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