Which of the Following Statements Is Correct

question 148

Multiple Choice

Which of the following statements is correct?

• A)A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.5, assuming that the stock's beta was correctly calculated and is stable.
• B)If a stock has a negative beta, its expected return must be negative.
• C)A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.5.
• D)According to the CAPM, stocks with higher standard deviations of returns must also have higher expected returns.

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Definitions:

Suicide

The act of intentionally causing one's own death, often associated with factors like mental illness, severe stress, or traumatic experiences.

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Psychopathology

Symptoms that cause mental, emotional, and/or physical pain.

Impulsive Behaviors

Acts performed suddenly without apparent thought, often with negative outcomes.