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Which of the following statements is incorrect? 1. The CAPM implies that excess returns will be positive for an asset with a positive B. 2.

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Which of the following statements is incorrect? 1. The CAPM implies that excess returns will be positive for an asset with a positive B. 2. Excess returns for risky assets can be positive or negative. 3. The risk premium for an asset equals its expected excess return 4. It is possible for most stocks to earn a negative excess return in the same month. Statement 2. Statement 4. Statement 3. Statement 1

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