Question: That questions have 4 sub questions please help^^ (c) Given the information below, CAPM postulates that security XYZ should have higher expected return compared to
That questions have 4 sub questions please help^^


(c) Given the information below, CAPM postulates that security XYZ should have higher expected return compared to security ABC. Security Standard Deviation Beta Coefficient ABC 15 1.2 XYZ 12 1.5 TRUE FALSE (Circle One) Answer: Explanation: (d) After Wang Xin purchases a $400 ticket (non-transferable and non-refundable) to a Lang Lang piano recital, she gets invited to her friend Wang Yihan's bachelorette party which unfortunately happens to be on the same evening as the recital. She obviously cannot attend both the recital and the party. If she had been invited to the party before buying the ticket for the recital, she would have chosen her friend's party over the recital; therefore she should still definitely go to her friend's party. Answer: TRUE FALSE (Circle One)
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