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 #1 and #4

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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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
#1 and #4
Transcribed Image Text: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 #1 and #4
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