Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Carolll$1,532.43
Zin$1,502.43
Visitor$1,268.61
Visitor$1,251.28
cuiting$1,249.70
Visitor$1,198.33
Jade$1,145.80
Skywalke...$1,070.00
mm11$1,050.33
ninalee$1,039.70
Visitor$1,024.70
Visitor$996.00
Visitor$985.61
Yuan$963.33
victor$934.70
zy$919.70
Doris$889.70
Emma Lu$880.00
Visitor$840.00
 

Question 244  CAPM, SML, NPV, risk

Examine the following graph which shows stocks' betas ##(\beta)## and expected returns ##(\mu)##:

Image of CAPM SML graph

Assume that the CAPM holds and that future expectations of stocks' returns and betas are correctly measured. Which statement is NOT correct?




Copyright © 2014 Keith Woodward