Which of the following statements is CORRECT? aYou think that investor sentiment is about to change, and investors are about to become more risk averse. This suggests that you should re$-$balance your to include more high$-$beta stocks Suppose you are managing a stock and you have that leads you to believe the stock market is likely to be very strong in the immediate future That isyou are convinced that the market is about to sharplyYou should sell your high$-$beta stocks and buy low$-$beta stocks in order to take advantage of the expected market move the market risk premium remains constant, but the risk$-$free rate declinesthen the required returns on low$-$beta stocks will rise while those on high$-$beta stocks will decline Suppose the returns on two stocks are negatively correlatedOne has a beta of $1,2$ as determined in a regression analysis using data for the last $5$ years, while the other has a beta of The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks that $-$year period Collections is in the business of collecting pastdue accounts for other companies, it is a collection agencyCollections revenues, profitsand stock price tend to during recessionsThis suggests that Collections beta should be quite high, say $2\mathrm{.}0,$ because it does so much better than most other companies when the economy weak