Based on capm if a companys beta is zero its required rate


True or False

1) All the possible combinations for 2 randomly selected stocks are most likely to form a curve on the standard deviation-expected return map due to the fact that the correlation between the two stocks is likely to be between 1 and -1

2) CAPM posits that the relevant risk is total risk, because this risk includes both firm-specific and market risks.

3) Based on CAPM, if a company's beta is zero, its required rate of return would also be zero.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Based on capm if a companys beta is zero its required rate
Reference No:- TGS02399025

Expected delivery within 24 Hours