Question: 7. Are the following statements true or false? Explain. a. Stocks with a beta of zero offer a zero expected rate of return. b. The

7. Are the following statements true or false? Explain. a. Stocks with a beta of zero offer a zero expected rate of return. b. The CAPM implies that investors require a higher expected rate of return to hold highly volatile securities. c. You can construct a portfolio with a beta of 0.75 by holding 0.75 of assets in T-bills and the rest in the market portfolio

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