Select all that are true.

We will almost always find that the beta of a diversified portfolio is less stable over time than the beta of a single security.

The slope of the SML is determined by the value of beta.

A stock's beta is more relevant as a measure of risk to an investor with a welldiversified portfolio than to an investor who holds only one stock.

When a firm makes bad managerial judgments or has unforeseen negative events that affect its returns, these random events are unpredictable and therefore cannot be reduced through diversification.

The tighter the probability distribution of an investment return, the smaller the risk of the investment as measured by the standard deviation.

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The coefficient of variation, calculated as the standard deviation divided by the expected return, is a standardized measure of the risk per unit of expected return.

Market risk refers to the tendency of a stock to move with the general stock market. A stock with above$-$average market risk will tend to be more volatile than an average stock, and it will definitely have a beta less than $1\mathrm{.}0.$