2. Ultimately, investors diversify their portfolio in order to 1 point Reduce its risk Increase its return O Increase its risk O O O O o Reduce its return Increase its risk-adjusted return 3. Consider ABC, a large tech company, and XYZ a small umbrella manufacturing company. If these two companies had the same beta, then according to the CAPM... 1 point O They both should have the same required return on equity O ABC should have a higher return on equity than XYZ O ABC should have a lower return on equity than XYZ They both should have a required return higher than that of the average company They both should have a required return lower than that of the average company