True or False

____ 2. The security market line describes the relation of required return to the standard deviation of return.

____ 3. In the CAPM, an assets risk is measured by its co-movement with the market portfolio.

____ 4. In the context of the CAPM, required return is not affected by unique risk.

____ 5. A stock with a beta of zero would be expected to have a rate of return equal to the T-bill rate.

____ 6. In the CAPM, that portion of an individual assets risk that cannot be diversified away by holding the asset in the market portfolio is called systematic risk.

____ 7. The security market line describes the relation between systematic risk and required return.