If the market is in equilibrium and the capm holds, Financial Management

If the market is in equilibrium and the capm holds

If the market is in equilibrium and the CAPM holds then:

Investors are indifferent to buying stocks with a variety of betas.

High beta stocks are less desirable than are low beta stocks.

Standard deviation is the relevant measure of market risk.

Investors require higher returns for higher-beta stocks.

More than one of the answers are correct.

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Financial Management: If the market is in equilibrium and the capm holds

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Financial Management: If the market is in equilibrium and the capm holds

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