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The shares of Lambunu Ltd have a negative return correlation with the market portfolio. According to the CAPM, which of the following statement(s) regarding the
The shares of Lambunu Ltd have a negative return correlation with the market portfolio. According to the CAPM, which of the following statement(s) regarding the expected return on the shares is (are) most likely to be true?
- The expected return will be less than the expected return on the market portfolio.
- The expected return will be less than the riskfree rate of return.
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