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Which of the following is TRUE regarding the beta coefficient? a. It is a measure of unsystematic risk. b. The risk premium of an asset
Which of the following is TRUE regarding the beta coefficient?
a.
It is a measure of unsystematic risk.
b.
The risk premium of an asset will increase if the beta of that asset decreases.
c.
A beta of one indicates an asset is totally risk-free.
d.
A beta greater than one represents lower systematic risk than the market.
e.
Generally speaking, the higher the beta the higher the expected return.
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