Given the CAPM's Noted Difficulties, Which of the Following Statements

question 2

Multiple Choice

Given the CAPM's noted difficulties, which of the following statements may be correct concerning a low price-earnings ratio stock?

• A)The stock has too much systematic risk
• B)The stock plots above the security market line
• C)The stock plots below the security market line
• D)The stock has a zero Beta

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Definitions:

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