Question: Example (CFA94 Level II): Briefly explain whether investors should expect a higher return from holding Portfolio A versus Portfolio B under capital asset pricing model

Example (CFA94 Level II): Briefly explain whether investors should expect a higher return from holding Portfolio A versus Portfolio B under capital asset pricing model (CAPM). Assume that both portfolios are fully diversified.

	Portfolio A	Portfolio B
Systematic risk (beta)	1.0	1.0
Specific risk for each individual security	High	Low

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