Which of the following statements is CORRECT?

A. Lower beta stocks have higher required returns.
B. A stock's beta indicates its diversifiable risk.
C. Diversifiable risk cannot be completely diversified away.
D. Two securities with the same stand-alone risk must have the same betas.
E. The slope of the security market line is equal to the market risk premium.


Answer: E

Business

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Indicate whether the statement is true or false

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A) summarize what she's already said B) conclude her presentation C) establish credibility with the audience D) show the organization of her presentation

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Indicate whether the statement is true or false

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