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Which one of the following statements about Risk, Return and the SML is true? The beta of a portfolio may be lower than the lowest

Which one of the following statements about Risk, Return and the SML is true? The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio. Risk and return are positively related Investing has two dimensions: standard deviation and beta Investors are compensated only for diversifiable risk Risk and return are inversely related

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