Question $6$

$0\mathrm{.}5$ pts

Mark the following as True or False:

Investors that follow the ideas of diversification demand higher expected rates of return on stocks with more variable rates of return $($or higher standard deviation$).$

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The CAPM predicts that a security with a beta of $0$ will offer a zero expected return.

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An investor who puts $$10,000$ in Treasury bills and $$20,000$ in the market portfolio will have a beta of $2\mathrm{.}0$

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Be sure you can justify your answer.