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Are the following statements true or false? a. Stocks with a beta of zero offer an expected rate of return of zero. True False b.

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Are the following statements true or false? a. Stocks with a beta of zero offer an expected rate of return of zero. True False b. The CAP implies that investors require a higher return to hold highly True False You can construct a portfolio with beta of 7.5 by investing .75 of the remainder in the market portfolio. True False

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