Question 6 1 pts Which of the following statements is correct? All the answers are correct. When beta equals one and there is no systematic risk, and therefore the expected return equals the risk-free rate. Most of the diversification benefit can often be achieved with as few as 2 or 3 assets. By investing in two or more assets whose values do not always move in the same direction at the same time, an investor can reduce the risk of his or her collection of investments, or portfolio Diversification by holding more than one asset with different risk characteristics can increase the risk of a portfolio Question 7 1 pts Which of the following statement is incorrect? The coefficient of variation divides the standard deviation of the returns of an asset by the expected rate of return of that asset. If you are building a portfolio, then you desire the assets in the portfolio to have relatively low positive correlations or zero correlations or negative correlations. According to the CAPM, the expected return on the market portfolio is equal to the risk free rate plus the market risk premium Most of the answers are correct except one. The standard deviation is a measure of systematic risk