Question: True or false? Explain or qualify as necessary. a. The expected rate of return on an investment with a beta of 2.0 is twice as

True or false? Explain or qualify as necessary.
a. The expected rate of return on an investment with a beta of 2.0 is twice as high as the expected rate of return of the market The contribution of a stock to the risk of a diversified depends on the market risk of the stock.
c. If a stock's expected rate of return plots below the security market line, it is underpriced.
d. A fully diversified with a beta of 2.0 is twice as volatile as the market An undiversified with a beta of 2.0 is twice as volatile as the market

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