Market is in equilibrium and the capm holds

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Reference no: EM131520659

If the market is in equilibrium and the CAPM holds then:

Investors are indifferent to buying stocks with a variety of betas.

High beta stocks are less desirable than are low beta stocks.

Standard deviation is the relevant measure of market risk.

Investors require higher returns for higher-beta stocks.

More than one of the answers are correct.

Reference no: EM131520659

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