25 - According to the Capital Asset Pricing Model (CAPM), a security with aа)negative alpha is considered to be a good buy.b)zero alpha is considered to be a good buy.c) O positive alpha is considered overpriced.d) O positive alpha is considered to be underpriced.

The capital asset pricing model describes the relationship between risk and expected return…

25 - According to the Capital Asset Pricing Model (CAPM), a security with a a) negative alpha is considered to be a good buy. b) O zero alpha is considered to be a good buy. c) O positive alpha is considered overpriced. d) O positive alpha is considered to be underpriced.

25 - According to the Capital Asset Pricing Model (CAPM), a security with a a) negative alpha is considered to be a good buy. b) O zero alpha is considered to be a good buy. c) O positive alpha is considered overpriced. d) O positive alpha is considered to be underpriced.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 6CQQ

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Question

25 - According to the Capital Asset Pricing Model (CAPM), a security with a
а)
negative alpha is considered to be a good buy.
b)
zero alpha is considered to be a good buy.
c) O positive alpha is considered overpriced.
d) O positive alpha is considered to be underpriced.

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