Question: Use the following three statement to answer this question: 1. Negative beta implies a negative standard deviation II. PAB = 0.7 (correlation) implies that when

Use the following three statement to answer this question: 1. Negative

Use the following three statement to answer this question: 1. Negative beta implies a negative standard deviation II. PAB = 0.7 (correlation) implies that when the return of stock A increases by 10%, the return of stock B increases by 7% III. If CAPM is correct, the expected return from non-systematic risk is zero. a. Both I and II are correct. O b. Only II is correct. C. Only III is correct O d. Both II and III are correct. O e. Both I and III are correct. &

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