Question: Which option is accurate? In a perfect CAPM world, some securities can have both lower risk and higher return than the market portfolio. In a

Which option is accurate?

In a perfect CAPM world, some securities can have both lower risk and higher return than the market portfolio.

In a multi-factor world, the market factor has the highest risk premium.

In a multi-factor world, all securities have market betas greater than one.

In a multi-factor world, some securities may offer better return than the market portfolio despite having a lower standard deviation than the market.

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