Suppose you believe that the variance of the market portfolio has decreased while all other factors remained the same. According to the CAPM the required rates of returns on stocks will O a. remain unchanged b. Decrease O c. Increase O d. need more information The expected returns on stock A and stock B are 10% and 20%, respectively. The betas of stock A and Stock B are 1 and 0.8 respectively. This situation a. Supports the CAPM O b. none is correct O c. does not support the CAPM Od. supports the EMH If security markets are efficient, then O a. technical analysis is useless O b. fundamental analysis is a waste of efforts O c. all of the answers are correct O d. active portfolio management underperforms passive portfolio management