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Use the Figure for the Question(s)below

Question 23

Multiple Choice

Use the figure for the question(s) below.Consider the following graph of the security market line: Use the figure for the question(s) below.Consider the following graph of the security market line:   -Portfolio  D : A) falls below the SML. B) has a negative alpha. C) is overpriced. D) offers an expected return equal to the risk-free rate.
-Portfolio "D":


A) falls below the SML.
B) has a negative alpha.
C) is overpriced.
D) offers an expected return equal to the risk-free rate.

Correct Answer:

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