All questions answered

If, on average, a security's return goes up by six percentage points when the market goes up by 10 and goes down by six when the market goes down by 10, its beta must be 0.6. (Investopedia-sigh-will be the first hit when you google this.) Mark value: 1 Answer type: True or False The required return on a risky security can be less than the risk-free rate of interest. Mark value: 1 Answer type: True or False A security whose beta is greater than 1 must have a standard deviation that is greater than the standard deviation of the market. Mark value: 1 Answer type: True or False What is the rationale for a security's return being proportional to its beta rather than its standard deviation Mark value: 1 Answer type: Text (no more than one sentences) How did Kroll, Levy, and Rapoport (1988) test the Separation Theorem, and by doing so, test the CAPM? Mark value: 2 Answer type: Text (no more than two sentences)