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Which of the following statements about the CAPM are true? Group of answer choices A. By the CAPM, all rational investors would agree that the
Which of the following statements about the CAPM are true?
Group of answer choices
A. By the CAPM, all rational investors would agree that the optimal risky portfolio is the market portfolio.
B. By the CAPM, the increase in the firm-specific risk will yield a higher risk premium to the stock.
C. By the CAPM, the risk-premium of a stock is determined by two things: 1) the market risk premium and 2) the systematic risk of the stock.
D. The first three statements are all true.
E. Only (A) and (C) are true.
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