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Which of the following is incorrect about the SML (Security Market Line)? a.A security underpriced is plotted below the SML. b.A security with a positive
Which of the following is incorrect about the SML (Security Market Line)?
a.A security underpriced is plotted below the SML.
b.A security with a positive alpha is plotted above the SML.
c.A security with beta of 1 and zero alpha is plotted at the same position as a market portfolio on SML.
d.A security fairly priced is plotted on the SML.
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