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Which of the following statements is/are incorrect? 1) A security's beta measures its market risk. 2) If investors become less risk averse, the slope of

Which of the following statements is/are incorrect? 1) A security's beta measures its market risk. 2) If investors become less risk averse, the slope of SML will decrease accordingly. 3) The tighter the probability distribution of its expected future return, the greater risk of a given investment as measured by its standard deviation. 4) SML is a graphical depiction of CAPM?

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