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Which one is false for the capital asset pricing model (CAPM)? Answer a. CAPM is based on the positive relation between risks and returns b.

Which one is false for the capital asset pricing model (CAPM)? Answer a. CAPM is based on the positive relation between risks and returns b. CAPM can be used to forecast an expected return of individual security. c. CAPM is based on fundamental analysis d. CAPM assumes that only systematic risk is rewarded in the market, and unsystematic risk can be diversified by making portfolio

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