Question: Q5. Are the following statements true or false? Please explain your answer. a. Stocks with a beta of zero offer an expected rate of return

Q5. Are the following statements true or false? Please explain your

Q5. Are the following statements true or false? Please explain your answer. a. Stocks with a beta of zero offer an expected rate of return of zero. (5 marks) b. The CAPM implies that investors require a higher return to hold highly volatile securities. (5 marks) c. You can construct a portfolio with beta of 0.75 by investing 75% of the investment budget in T-bills (risk free) and the remainder in the market portfolio

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