Which of the following statements is incorrect? The tighter the probability distribution of expected future returns, the smaller the risk of a given investment as measured by the standard deviation. When investors require higher rates of return for investments that demonstrate higher variability of returns, this is evidence of risk aversion. A stock with above-average market risk will tend to be more volatile than an average stock, and it will definitely have a beta which is greater than 1.0 A stock's beta is more relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only one stock. If investors become more averse to risk, the slope of the Security Market Line (SML) will decrease