Suppose that the expected return of market portfolio is 14% and the risk-free rate is 5%. Stock A Stock B Stock C Beta 0.5 1.0 1.5 Which of the following statements is false based on CAPM?

If the investor invests equal amount in each of the three stocks, the portfolio will be as risky as the market portfolio.

If the investor invests equal amount in Stock A and Stock C only, the portfolio is expected to earn 9.5%.

The expected return on Stock B is 14%.

The actual return on Stock C will always be greater than that of Stock B. None of the alternatives is false.