According to the Capital Asset Pricing Model (CAPM), a security with a positive is considered to be overpriced. positive alpha is considered to be underpriced. negative alpha is considered to be a good buy. zero alpha is considered to be a good buy Which of the following statements is correct? If a new project is riskier than the firm's existing projects, then it should be expect to be 'charged' a higher discount rate of than the firm's overall weighted average cost of capital. The project's risk and the cost of capital to which it is compared are independent. A project's rate of return and it's cost of capital are positively correlated. If a new project is riskier than the firm's existing projects, then it should be expect to be 'charged' a lower discount rate than the firm's overall weighted average cost of capital. The measure of risk for a security held in a diversified portfolio Covariance of returns Expected returns Standard deviation of returns Variance of returns