True or false. If your answer
is false, you must justify your answer with a one sentence
explanation to receive any credit.
1. The theory of diversification says that we can eliminate
unsystematic risk in an equity portfolio by holding a sufficient
number of securities.
2. The CAPM predicts that a security with a beta of 0 will have
an expected return of 0.
3. If asset A and asset B both have an expected return of .1,
then any...