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5. Suppose that you have a stock with a market beta of zero. This means that (A) the stock has no risk for an investor
5. Suppose that you have a stock with a market beta of zero. This means that
(A) the stock has no risk for an investor when held alone.
(B) the stock adds no risk when held in a market portfolio.
(C) the stocks returns must have a standard deviation of zero.
(D) the expected return on this stock must be zero or negative.
(E) this stocks returns must be uncorrelated with the market returns
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