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:

Patient Treated

Refers to an individual who has received medical care or treatment.

Stuttering

A communication disorder characterized by disruptions, or disfluencies, in a person’s speech.

Nontraumatic Subarachnoid Hemorrhage

A type of stroke caused by bleeding into the space surrounding the brain not due to injury, often resulting in sudden severe headache, stiff neck, and loss of consciousness.

Patient Treated

Indicates that a patient has received medical examination, consultation, or intervention.