The capital asset pricing model:

a. provides a risk-return trade-off in which risk is measured in terms of the total market volatility.

b. provides a risk-return trade-off in which risk is measured in terms of covariance of the market and the security, divided by the variance of the markets returns.

c. measures risk as the coefficient of variation between security and markets return.

d. measures risk-return trade-off in which risk is measured by the markets coefficient of variation divided by the standard deviation of the markets return

e. provides a risk-return trade-off in which risk is measured in terms of variance of the market divided by the variance of the securitys returns

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Which of the following statements is correct?

a. Standard deviation is the square of the variance.

b. Standard deviation can be positive or negative.

c. A probability distribution can have probabilities that add up to more than one.

d. The variance of a portfolio was first discovered by Harry Markowitz.

e. The mathematics for understanding portfolio variances has been understood for well over 1000 years.