According to CAPM which of the following statements is (are) correct? #1 Financial assets with the same systematic risk should offer the same expected return. #2 Financial assets with the same standard deviation should offer the same expected return. # 3 In equilibrium, financial assets should offer the same asset risk premium to systematic risk ratio. # 4 In equilibrium, financial assets should offer the same asset risk premium to standard deviation ratio. O #1 and #3 #2 and #3 # 2 and #4

According to CAPM which of the following statements is (are) correct? #1 Financial assets with the same systematic risk should offer the same expected return. #2 Financial assets with the same standard deviation should offer the same expected return. # 3 In equilibrium, financial assets should offer the same asset risk premium to systematic risk ratio. # 4 In equilibrium, financial assets should offer the same asset risk premium to standard deviation ratio. O #1 and #3 #2 and #3 # 2 and #4

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section: Chapter Questions

Problem 1Q

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