Question: Explain why this statement is true or false: The capital asset pricing model predicts that security with a beta less than zero will provide an

Explain why this statement is true or false: The capital asset pricing model predicts that security with a beta less than zero will provide an expected return higher than the market portfolio return.

Explain why this statement is true or false: According to CAPM, the price of a security will fall if its expected rate of return lies above the security market line.

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