Beta is zero-required rate of return would also be zero

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Reference no: EM131603483

True or False

1) All the possible combinations for 2 randomly selected stocks are most likely to form a curve on the standard deviation-expected return map due to the fact that the correlation between the two stocks is likely to be between 1 and -1

2) CAPM posits that the relevant risk is total risk, because this risk includes both firm-specific and market risks.

3) Based on CAPM, if a company's beta is zero, its required rate of return would also be zero.

Reference no: EM131603483

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