If the securitys return plot is below the SML, Then it can be said that__________.
A. it is overpriced.
B. the required rate of return is much lower than the actual rate of return.
C. the investors would try to buy more of the security.
D. it is a defensive security.
Answer:A
If the securitys return plot is below the SML, Then it can be said that__________.
A. it is overpriced. B. the required rate of return is much lower than the actual rate of return. C. the investors would try to buy more of the security. D. it is a defensive security.