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Which of the following is (are) correct according to CAPM? A. A fairly priced security should have a beta = zero. B. Alpha is the

Which of the following is (are) correct according to CAPM?

A. A fairly priced security should have a beta = zero.

B. Alpha is the intercept while beta is the slope of the Security Market Line (SML).

C. Beta represents diversifiable risk.

D. None of the above.

E. Risk-free rate is the intercept while beta is the slope of the Security Market Line (SML).

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