What does an asset having a negative beta value imply? non-existence because negative beta assets are theoretically impossible the higher expected return of this asset a risk-reducing property when added to a portfolio a necessary component to get a fully diversified portfolio Stocks A and B both have an expected return of 10% and a standard deviation of returns of 25%. Stock A has a beta of 0.8 and Stock B has a beta of 1.2. The correlation coefficient, r, between the two stocks is 0.6. Portfolio P is a portfolio with 50% invested in Stock A and 50% invested in B. Which of the following statements is correct? Stock A should have a higher expected return than Stock B as viewed by the marginal investor. Portfolio P has more market risk than Stock A but less market risk than Stock B. Portfolio P has a standard deviation of 25% and a beta of 1.0. Based on the information we are given, and assuming those are the views of the marginal investor, it is apparent that the two stocks are in equilibrium