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