A stock's beta is more relevant as a measure of risk to an investor who holds only one stock than to an investor who holds a well-diversified portfolio.
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Q22: If the returns of two firms are
Q23: We would generally find that the beta
Q24: Under the CAPM, the required rate of
Q25: A portfolio's risk is measured by the
Q26: It is possible for a firm to
Q28: The CAPM is built on historic conditions,
Q29: A firm can change its beta through
Q30: A stock with a beta equal to
Q31: The slope of the SML is determined
Q32: If an investor buys enough stocks, he
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