Multiple Choice
Which of the following statements is CORRECT?
A) Lower beta stocks have higher required returns.
B) A stock's beta indicates its diversifiable risk.
C) Diversifiable risk cannot be completely diversified away.
D) Two securities with the same stand-alone risk must have the same betas.
E) The slope of the security market line is equal to the market risk premium.
Correct Answer:
Verified
Correct Answer:
Verified
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