Which of the following statements is TRUE? Group of answer
choices
Securities are in equilibrium when the ratio of the contribution
to the market's risk premium divided by the contribution to the
market's variance is the same for all stocks.
None of these statements are true.
According to CAPM, a stock’s fair value return depends on its
total risk as measured by standard deviation.
Microsoft, Apple, Google & FaceBook have delivered returns
in excess of their CAPM return over time (i.e. they delivered
positive alphas). This evidence disproves the semi-strong form of
EMH.
In the CAPM regression, beta is the y-intercept and alpha is the
slope of the best-fit regression line.
Which of the following statements is TRUE? Group of answer choices Securities are in equilibrium when the ratio of the c
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