For each of the following, choose whether the statement is ALWAYS TRUE, ALWAYS FALSE, or CANNOT BE DETERMINED. Assume that the CAPM is correct, the risk free rate is 2% and the market risk premium is 6.5%. Explanation necessary.

a.The average return on the stock of XVZ was less than the average return of the market between 2017 and 2020. Therefore, the stock of XVZ has less overall risk than the market.

b.The average return on the stock of XYZ was less than the average return of the market between 2017 and 2020. Therefore, the stock ofXVZ has a lower expected return than the market.

c.The stock of ABC has higher volatility than the market. Therefore, the stock of ABC has a higher expected return than the market.

d.The stock of ABC has the same expected return as the market. Therefore, the beta of

the stock of ABC is 1.

e.The stock of ABC has the same beta as the market. Therefore, the stock of ABC has the same volatility as the market.

f.The stock of JKL and the stock of MNO have the same volatility. Therefore, the stock of JKL and the stock of MNO have the same expected return.

g.The stock of DEF and the stock of GHI have the same beta. Therefore, the stock of

DEF and the stock of GHI have the same expected return.