Which Statement Is Correct

question 28

Multiple Choice

Which statement is correct?

• A)An underpriced security will plot below the security market line.
• B)A security with a beta of 1.54 will plot on the security market line if it is correctly priced.
• C)A portfolio with a beta of .93 will plot to the right of the overall market.
• D)A security with a beta of .99 will plot above the security market line if it is correctly priced.
• E)A risk-free security will plot at the origin.

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