Which of the following statements is correcta a stocks beta, Ask an Expert

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Which of the following statements is CORRECT?

a. A stock's beta indicates its diversifiable risk.

b. The slope of the security market line is equal to the market risk premium.

c. Lower beta stocks have higher required returns.

d. Two securities with the same stand-alone risk must have the same betas.

e. Diversifiable risk cannot be completely diversified away.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91381464

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