Question 13 0/1 pts If stock markets are efficient in the sense of Bachelier's theory,...
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Question 13 0/1 pts If stock markets are efficient in the sense of Bachelier's theory, then a share with a standard deviation on its returns of 1% per day will have a standard deviation of over periods of 25 days. virtually zero over such a long period, due to time diversification 4% Less than 1% 1% 596 Question 14 0/1 pts The Security Market Line (SML) differs from the Capital Market Line (CML) in CAPM because the SML relates to systematic risk, while the CML includes unsystematic risk. the SML is used to estimate beta values, while the CML is used to estimate required rates of return. the CML is used to estimate beta values, while the SML is used to estimate required rates of return. the SML is applicable to a single risky asset, while the CML is applicable only to diversified portfolios. the SML is is applicable only to diversified portfolios, while the CML is applicable to a single risky asset
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