Assume that CAPM does not hold and securities may earn abnormal returns. Suppose security 1...
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Finance
Assume that CAPM does not hold and securities may earn abnormal returns. Suppose security 1 has a lower alpha than security 2, which statement below is true:
Security 1 has a lower total return than security 2
Security 1 has a lower expected return than security 2
Security 1 has a lower abnormal return than security 2
Security 1 has lower total risk than security 2
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