State whether each of the following is inconsistent with an efficient capital? market, the? CAPM,...
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Finance
State whether each of the following is inconsistent with an efficient capital? market, the? CAPM, or? both: a. A security with only diversifiable risk has an expected return that exceeds the? risk-free interest rate. b. A security with a beta of 1 had a return last year of? 15% when the market had a return of? 9%. c. Small stocks with betas of 1.5 tend to have higher returns on average than large stocks with betas of 1.5.??
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