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True or False, if False, why? 9. A risk averse individual is likely to have a convex utility function. 10. The Capital Asset Pricing Model
True or False, if False, why?
9. A risk averse individual is likely to have a convex utility function.
10. The Capital Asset Pricing Model measures relevant risk of a security and shows the relationship between risk and expected return.
11. The Capital Asset Pricing Model implies that all risky assets must have a positive risk premium.
12. According to the Capital Asset Pricing Model, securities with positive alphas are considered as overpriced.
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