Question: 5 Question 16 (2 points) Choose the correct response based on CAPM concept i) The expected rate of return on a security increases as its

 5 Question 16 (2 points) Choose the correct response based on

5 Question 16 (2 points) Choose the correct response based on CAPM concept i) The expected rate of return on a security increases as its beta increases. ii) A fairly priced security lies on the Security Market Line. iii) In equilibrium, all securities lie on the security market line. iv) In equilibrium, the expected rate of return on a security can be negative. All of the above are true O All of the above are false Only three of the above are true Only two of the above are true Only one of the above is true

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