Question: What does it imply when a security lies below the security market line ( SML ) ? Question 5 Answer a . The security is

What does it imply when a security lies below the security market line (SML)?
Question 5Answer
a.
The security is underpriced
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b.
The security has a positive alpha
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c.
All of the other three options
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d.
The security's actual expected return is lower than the one predicted by CAPM

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