Question: QUESTION 2 Multiple Answers (THREE Correct Statements) In the context of the capital asset pricing model or APT, which statement is correct? A fairly priced

 QUESTION 2 Multiple Answers (THREE Correct Statements) In the context of

QUESTION 2 Multiple Answers (THREE Correct Statements) In the context of the capital asset pricing model or APT, which statement is correct? A fairly priced security will plot on the security market line. Arbitrage is based on the idea that assets with identical risks must have the same expected rate of return The fair price (return) of financial security is determined by the systematic risk. The firm-specific risk is more important because we can not avoid it easily

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