rue or false?
-A stock with a Beta > 1 would be considered to be more risky than the overall stock market.
-Beta is a measure of the unsystematic risk of a stock.
-The basic premise of portfolio theory is that by adding stocks that have highly correlated returns to a portfolio reduces the overall risk of the portfolio.
-The effect of an efficient portfolio is that systematic risk is largely eliminated.
-If one wants to build an efficient portfolio consisting of two stocks, it would be best if returns of those two stocks have a correlation coefficient < 0.
-Adding more stocks to a portfolio reduces the unsystematic risk of the portfolio.
-The Security Market Line relates the expected return of a stock to its Beta.
-In market equilibrium, the ratio of expected return to Beta for all stocks will be equal.
-In portfolio theory, the risk-free rate has no impact on the 'reward-to-risk' ratio.
-The Beta of a portfolio is the simple average of the Betas of the stocks in that portfolio.
-The stock of a biotechnology company will most likely have a higher Beta than the stock of a public utility company.
-In the Capital Asset Pricing Model, the expected return on a stock depends only on that assets unsystematic risk.