Item$4$

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Item$4$

Problem $7-3($Static$)$

Are the following statements true or false?

Required:

Stocks with a beta of zero offer an expected rate of return of zero.

multiple choice $1$

True

False

The CAPM implies that investors require a higher return to hold highly volatile securities$.$

multiple choice $2$

True

False

You can construct a portfolio with a beta of $0\mathrm{.}75$ by investing $0\mathrm{.}75$ of the investment budget in T$-$bills and the remainder in the market portfolio.

multiple choice $3$

True

False