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Use the Figure for the Question(s)below

Question 27

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  C : A) is less risky than the market portfolio. B) has a relatively lower expected return than predicted. C) is underpriced. D) has a negative alpha.
-Portfolio "C":


A) is less risky than the market portfolio.
B) has a relatively lower expected return than predicted.
C) is underpriced.
D) has a negative alpha.

Correct Answer:

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