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Which of the following statements are true assuming that all assets satisfy CAPM? a) Low-beta stocks always have lower return standard deviation than high beta
Which of the following statements are true assuming that all assets satisfy CAPM?
a) Low-beta stocks always have lower return standard deviation than high beta stocks.
b) All the assets have the same expected return.
c) Two assets with different beta can have same expected returns.
d) Assets cannot earn expected returns above the CAPM-implied expected return.
Please explain the correct answers and why the other ones are incorrect
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