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Which of the following statements is not true? a. to measure the risk, CAPM assumes a possibility of mispricing in the market. b. A higher

Which of the following statements is not true?

a.

to measure the risk, CAPM assumes a possibility of mispricing in the market.

b.

A higher risk means that investors require more return

c.

the risk measure in CAPM is the beta

d.

The risk is measured based on the relation between market portfolio return and individual security return

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