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Statements about capital asset pricing model

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Reference no: EM133005018

Which of the following statements about Capital Asset Pricing Model is TRUE?

  1. Investors do not get rewarded for bearing idiosyncratic risk.
  2. Investors should hold a portfolio with minimum risk.
  3. An investor's selection of risky assets depends on their degree of risk aversion.
  4. The correlation coefficient between two risky assets cannot be greater than 1.

Reference no: EM133005018

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