Which of the Following Statements Is CORRECT

question 87

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.

---

Definitions:

Potassium Supplement

A dietary supplement used to increase potassium intake, important for nerve function, muscle control, and blood pressure regulation.

Packed Red Blood Cells (RBCs)

Concentrated red blood cells separated from plasma, used for transfusions to treat anemia or blood loss.

Blood Infuse

The process of transferring blood or blood products directly into a person's bloodstream, commonly known as a blood transfusion.

Infusion Completion

The point at which a liquid medication or nutrient solution has been fully delivered into the patient's bloodstream via intravenous therapy.