31. Which of the following will reduce the required return on an investment? a. an increase in beta and a reduction in the Treasury bill rate b. an increase in the Treasury bill rate and a decrease in beta c. a decrease in the Treasury bill rate and a decrease in beta d. an increase in the Treasury bill rate and an increase in beta 32. For a security to help diversify a portfolio, the asset a. must generate a greater return than the average return on the portfolio b. should not be sensitive to changes in security prices c. should have a return that is negatively correlated with the return on other securities in the portfolio d. must be a debt instrument if the portfolio consists primarily of stocks 33. Components of the capital asset pricing model include a. a stock's market price b. the standard deviation of a stock's return c. the rate on a risk-free security d. the investor's need for income versus capital gains