Which of the following statements is correct?
A) If the returns on a share could vary widely, and its standard deviation is large, then the share will necessarily have a large beta coefficient.
B) A share that is more highly positively correlated with "The Market" than most shares would not necessarily have a beta coefficient that is greater than 1.0.
C) A share's standard deviation of returns is a measure of the share's "stand-alone" risk, while its coefficient of variation measures its risk if the share is held in a portfolio.
D) A portfolio that contained 100 low-beta shares would be riskier than a portfolio containing 100 high-beta shares.
E) Negative betas cannot exist; if you calculate one, you made an error.
Correct Answer:
Verified
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