Question 3-4. Thanks!

Which of the following statement is NOT correct? A security with b=1 means that a stock's return is expected to move in the opposite direction with the market's return. A beta of 1 implies the security is just as risky as the average stock on the market. A beta of 1 implies the security has the same systematic risk as the overall market. A security with b=1 means that a stock's return is expected to move in the same magnitude as market's return. Question 4 (20 points) If the risk-free rate of return is 4%, the expected return on the market portfolio is 6%, and the required rate of return on an individual security is 10%, what is the beta of that individual security? Question 5 (20 points) The economy may enter boom, recession or normal states in the next year. Below is the predicted return in 3 different states. What is the standard deviation of expected