Which of the Following Statements Is Not True Regarding the CAPM

question 39

Multiple Choice

Which of the following statements is not true regarding the CAPM?

• A)If a share's expected return is 2% and the expected return on the market portfolio is 11%,the share's beta must be negative.
• B)In equilibrium,all risky assets are priced such that their expected return lies on the security market line.
• C)Investors do not differ in their attitudes towards risk.
• D)A and B
• E)A and C

---

Definitions:

Speed

The rate at which someone or something is able to move or operate.

Procrastination

Delaying a task for an invalid or weak reason.

Jump-Starts

Initiatives or actions taken to quickly start or accelerate a process, project, or activity.

Tiny Task

A very small or minor job, duty, or responsibility.