Please assist with the given problems.
Risk and Return. True or false? Explain or qualify as necessary.
a) The expected rate of return on an investment with a beta of 2 is twice as high as the expected rate of return of the market portfolio.
b) The contribution of a stock to the risk of a diversified portfolio depends on the market risk of the stock.
c) If a stock's expected rate of return plots below the security market line, it is underpriced.
d) A diversified portfolio with a beta of 2 is twice as volatile as the market portfolio.
e) An undiversified portfolio with a beta of 2 is twice as volatile as the market portfolio.