Solved: Securities with the same standard deviation, Finance Basics

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Securities with the same standard deviation

Problem:

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."

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Finance Basics: Securities with the same standard deviation

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