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 portfolio b The contribution of a stock to the risk of a diversified portfolio depends on the market risk of the stock c If a...

a False The stocks risk premium not its expected rate of return is twice as hi ...

True or false? Explain or qualify as necessary. a. The expected rate of return on an investment

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 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 Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...