According to the Capital Asset Pricing Model (CAPM), overpriced securities have
A)positive betas.
B)zero alphas.
C)negative alphas.
D)positive alphas.

Name: According to the Capital Asset Pricing Model (CAPM), overpriced securities have A)positive betas. B)zero alphas. C)negative alphas. D)positive alphas.
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Question

Quizplus · Accepted Answer

According to CAPM, securities with negative alphas are considered overpriced. This means that their expected returns are lower than what is predicted by their beta value.

According to the Capital Asset Pricing Model (CAPM), Overpriced Securities