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Are the following statements true or false? Please briefly explain your answer. A correct answer without an explanation is worth 0 points. A correct answer

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Are the following statements true or false? Please briefly explain your answer. A correct answer without an explanation is worth 0 points. A correct answer with an incorrect explanation can also be worth 0 points depending on how incorrect the explanation is. a) (1 point) There are 2 stocks: A and B. Stock B has a smaller standard deviation than stock A. Statement: The variance of a portfolio of stocks A and B must be at least as high as the variance of stock B. b) (1 point) CAPM holds. Statement: If the expected market return increases, but stock A beta and risk-free rate stay constant, then the expected return on stock A must increase. c) (1 point) CAPM holds. Statement: If the expected market return increases and stock A beta increases, but the risk-free rate stays constant, then the expected return on stock A must increase

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