Question: Question 2 1 pts Which one is false? The beta of a risk free security is zero If the expected return of a stock is

Question 2 1 pts Which one is false? The beta of

Question 2 1 pts Which one is false? The beta of a risk free security is zero If the expected return of a stock is larger than its required return obtained from the CAPM, it is undervalued. If two stocks move in the same direction (positively correlated), grouping them together has no diversification effect. The beta of the market is one

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