According to the Capital Asset Pricing Model (CAPM)

question 31

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) ,

• A) a security with a positive alpha is considered overpriced.
• B) a security with a zero alpha is considered to be a good buy.
• C) a security with a negative alpha is considered to be a good buy.
• D) a security with a positive alpha is considered to be underpriced.
• E) none of these.