Question
Which of the followings is not correct? options: The slope of the SML is determined by the market risk premium. A stock with a beta
Which of the followings is not correct?
options:
The slope of the SML is determined by the market risk premium.
A stock with a beta equal to 1.5 has more systematic (or market) risk than the average stock.
The SML relates required returns to firms' diversifiable risk.
A stock's beta is an appropriate measure of risk if the stock is held in a well-diversified portfolio.
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
