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Suppose that you have a stock with a market beta of zero. This means that: a) the stock has no risk for an investor when

Suppose that you have a stock with a market beta of zero. This means that:

a) the stock has no risk for an investor when held alone. b) the stock adds no risk when held in a market portfolio. c) the stock s returns must have a standard deviation of zero. d) the expected return on this stock must be zero or negative. e) this stock s returns must be uncorrelated with the market returns.

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