Is the following statement True, False, or Ambiguous? Provide a short justification for your
answer (you are evaluated on the justification).
"In the CAPM model, since investors are compensated for holding risk, two securities with the same standard deviation should have the same expected return."© BrainMass Inc. brainmass.com August 21, 2018, 7:34 am ad1c9bdddf
False. CAPM is applicable when we are picking securities for building portfolio. It considers Beta as ...
Answers a conceptual question on CAPM.