pe of the security market line is beta. The slope of the security market line is the market risk premium, (RM - RRF). If you double a company's beta its required return more than doubles. Statements a and c are correct. Statements b and c are correct. You have developed the following data on three stocks: Stock Standard Deviation Beta 0.25 1.50 0.05 0.50 0.40 2.30 if you are a risk minimizer, you should choose Stock , if it is to be held in isolation and Stock if it is to be held as part of a well-diversified portfolio. A; B B; B B; A C; C Inflation, recession, and high interest rates are economic events that are characterized as m Company-specific risk that can be diversified away Market risk. Systematic risk that can be diversified away, Diversifiable risk. Unsystematic risk that can be diversified away. instant, (1) if the expected inflation rate decreases, and (2) investors would shift