Which statement is TRUE?
a) We would generally find that the beta of a single is more stable over time than the beta of a diversified portfolio.
b) If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent owning stocks, but as a general rule it will not be possible to eliminate all diversifiable risk.
c) A firm can change its beta through managerial decisions, including capital budgeting and capital decisions.
d) Under the CAPM, the required rate of return on a firm's common stock is determined only by the firm's standard deviation.