Question: Are the following statements true or false? a. Stocks with a beta of zero offer an expected rate of return of zero. b. The CAPM

Are the following statements true or false?

a. Stocks with a beta of zero offer an expected rate of return of zero.

b. The CAPM implies that investors require a higher return to hold highly volatile securities.

c. You can construct a portfolio with a beta of .75 by investing .75 of the budget in bills and the remainder in the market portfolio.

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