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An important implication of the Capital Asset Pricing Model (CAPM) is that when a security is held in a well-diversified portfolio, beta becomes an additional

An important implication of the Capital Asset Pricing Model (CAPM) is that when a security is held in a well-diversified portfolio, beta becomes an additional measure of risk; that is, in addition to the standard deviation of the security's return.

1)

True

2)

False

3)

Statement is correct but only when stock beta is equal to 1

4)

Statement is correct but only when correlation coefficient is negative

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