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Both the CAPM and APT Suggest That an Asset Should

Question 38

Multiple Choice

Both the CAPM and APT suggest that an asset should be priced so that it has a higher expected return


A) when it has a greater systematic risk.
B) when it has a greater risk in isolation.
C) when it has a lower systematic risk.
D) when it has a lower systematic risk and a lower risk in isolation.

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