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3. Which of the following statements is true? a. Beta is the slope of the security market line. b. A stock with a beta of

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3. Which of the following statements is true? a. Beta is the slope of the security market line. b. A stock with a beta of 1.00 has a risk premium equal to the market risk premium. c. Adding a stock with a high standard deviation to a portfolio always increases the risk of the portfolio. d. The higher is a stock's beta, the lower is the standard deviation of the stock's returns. e. both b and d are correct

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