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Which of the following is FALSE about the CAPM? A. The CAPM assumes that investors are raitonal and hold efficient portfolios. B. The CAPM assumes

Which of the following is FALSE about the CAPM?

A. The CAPM assumes that investors are raitonal and hold efficient portfolios.

B. The CAPM assumes that unlimited borrowing and lending is possible.

C. The CAPM compensates an investor only for systematic risks

D. The CAPM compensates an investor only for firm-specific risks

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