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Which of the Following Statements Is FALSE

Question 102

Multiple Choice

Which of the following statements is FALSE?


A) The expected return of a portfolio should correspond to the portfolio's beta.
B) Graphically the line through the risk-free investment and the market portfolio is called the capital market line (CML) .
C) The beta of a portfolio is the weighted average beta of the securities in the portfolio.
D) By holding a negative beta security,an investor can reduce the overall market risk of her portfolio.

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