What is of the following is wrong for the CAPM? Even if the risk of a stock is entirely due to firm specific rink, the stock is expected to earn the same return on a risk free andet A non-zero alpha reflects that the security is efficiently priced in the CAPM world CAPM makes sure that the following risk-reward ratio to be the same across stocks: E(R)Cov(R, Rm), where is the excess return of a stock and Rm is the excess return of the market. CAPM makes sure that the following risk-reward ratio to be the same across stocks: E(R)/Var(R), where is the excess return of a stock