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Which of the following statements are incorrect? Statement 1: Plotting the difference between an asset's return over the riskfree rate against the difference between the

Which of the following statements are incorrect?

  • Statement 1: Plotting the difference between an asset's return over the riskfree rate against the difference between the market's return over the riskfree rate produces the security market line (SML).
  • Statement 2: The standard deviation of an equally weighted portfolio divided by the standard deviation of a single security is known as the diversification ratio.

Group of answer choices

A. None of the above

B. Statement 1 only

C. Statement 2 only

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