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Under the CAPM, the relationship between the expected return on a stock (i) and the risk-free rate is when the correlation (of returns] between stock

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Under the CAPM, the relationship between the expected return on a stock (i) and the risk-free rate is when the correlation (of returns] between stock (i) and the market portfolio is less than 0. Expected return on stock (1) = risk-free rate Expected retum on stock () > risk-free rate Expected return on stock (i)

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