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Which of the following statements are true? List all correct options. a. The beta of the market portfolio is 0. b. The volatility of a
Which of the following statements are true? List all correct options.
a. The beta of the market portfolio is 0.
b. The volatility of a large portfolio results from the common systematic risk between the stocks in the portfolio.
c. A stock's beta is the percentage change in its return that we expect for each 1% change in the market's return.
d. The required rate of return on a stock is increasing in the stock's systematic risk.
e. The volatility (the standard deviation) of stock returns is a measure of total risk for the stocks investors.
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