Question 6 (2 points) Which one of the following statements is true: The beta of a risk free security is equal to one. If an investor invests all his money in the market portfolio, he has eliminated all risk completely. Corporate debt is risk free, because investors are promised a series of contractually fixed payment (i.e. unlike stocks, bonds are fixed income securities). According to the CAPM, assets with B - 2 have an expected return that is twice as high as the expected return on the market portfolio. According to the CAPM, the expected return on assets with beta equal to zero is the risk free rate. Question 7 16 points) Following are end of month stock prices for company XYZ. At the start of January the stock price was 22.00, a dividend of 0.40 dollars was paid at the end of Feb and was reinvested. What is the total holding period return for XYZ over the 3 month period? Report the answer using two decimal points as a decimal, not as a percentage. (i.e. 0.54) Month Price Jan 21.5 18.0 Mar 23.5 Feb Your