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Which of the following is incorrect? 1. higher beta stocks have a higher required return 2. two securities with the same stand alone risk can

Which of the following is incorrect?

1. higher beta stocks have a higher required return

2. two securities with the same stand alone risk can have different betas

3. the slope of the security market is measured by beta

4. The market risk premium is affected by attitudes about risk

5. Company specific risk can be diversified away

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