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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 13: Return, Risk, and the Security Market Line
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    An Asset That Has an Expected Rate of Return Above
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An Asset That Has an Expected Rate of Return Above

Question 332

Question 332

Multiple Choice

An asset that has an expected rate of return above the security market line:


A) Is overpriced.
B) Is underpriced.
C) Is less risky than the market.
D) Has a beta greater than 1.
E) Has a standard deviation equal to 0.

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