Question: Sidney wants to construct a strategy that delivers alpha with respect to the CAPM. Which of the following strategies would you advise her to follow?

Sidney wants to construct a strategy that delivers alpha with respect to the CAPM. Which of the following strategies would you advise her to follow? Please select all that apply.

(a) Buy stocks with low idiosyncratic risk.

(b) Buy stocks with low systematic risk.

(d) Buy stocks of large companies.

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