Question: Choose a false statement and give explanation. SML provides hurdle rate for internal projects SML graphs individual asset risk premiums as function of asset risk.

  1. Choose a false statement and give explanation.

    1. SML provides hurdle rate for internal projects

    2. SML graphs individual asset risk premiums as function of asset risk.

    3. Alpha is abnormal rate of return on security in the excess of the predicted by CAPM.

    4. CAPM use SCL as benchmark for fair return on risky asset.

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