8 and 9 Also explain why briefly

8. Choose a false statement and give explanation. a a. Betas represent security's responsiveness to market in index model b. Index model relates stock returns to returns on firm specific factors. C. SCL is a plot of security's predicted excess return from excess return of market. d. Firm-specific risk is the component of return variance independent of market factor a 9. Choose a false statement and give explanation. a. Mutual fund theorem suggests passive strategy is efficient. b. Market portfolio M composed of each security held in proportion to market value. c. Market portfolio is on inefficient frontier but optimal risky portfolio. d. Risk premium on individual asset is proportional to risk premium on market portfolio