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Given the CAPM's Noted Difficulties, Which of the Following Statements

Question 60

Multiple Choice

Given the CAPM's noted difficulties, which of the following statements may be correct concerning a low price-earnings ratio stock?


A) The stock has too much systematic risk
B) The stock plots above the security market line
C) The stock plots below the security market line
D) The stock has a zero Beta

Correct Answer:

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