Which type of risk when investing in individual stocks

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1. Two securities have the same expected return. a) According to the CAPM, what can you say about their market risk? b) Their total risk?

2. What happens to the slope of the CML efficient frontier if the risk-free rate increases and other expected returns and standard deviations do not change?

3. The Capital Market Line indicates that there is additional expected return for taking on which type of risk when investing in individual stocks?

Reference no: EM132006621

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