Assume the capm holds and all assets are in equilibrium


Assume the CAPM holds and all assets are in equilibrium. Security A has a higher standard deviation of returns than Security B. Which of the following statements CAN BE true?

Security A has a larger alpha than Security B.

The likely range of returns for Security A in a given year would be higher than the likely range of returns for Security B.

The Sharpe ratio of A will be higher than the Sharpe ratio of B.

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Financial Management: Assume the capm holds and all assets are in equilibrium
Reference No:- TGS02618015

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