Which of the following statements is true?

a. Beta is the slope of the security market line.

b. A stock with a beta of 1.00 has a required return equal to the required return on the market.

c. Adding a stock with a high standard deviation to a portfolio always increases the risk of the portfolio.

d. The higher is a stocks beta, the lower is the standard deviation of the stocks returns.

e. both b and d are correct

Which of the following statements is true? a. Beta is the slope of the security market line. O b. A stock with a beta of 1.00 has a required return equal to the required return on the market. c. Adding a stock with a high standard deviation to a portfolio always increases the risk of the portfolio. d. The higher is a stock's beta, the lower is the standard deviation of the stock's returns. O e both b and d are correct