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Which of the following statements are INCORRECT? I Beta measures non-diversifiable risk. II Market's beta is always 1. III When an asset's beta is more than 1, the asset's return should be more than 1%. IV Investors are only compensated for taking diversifiable risk. Group of answer choices 1. I and III 2. II and III 3. III and IV

Which of the following statements are INCORRECT? I Beta measures non-diversifiable risk. II Market's beta is always 1. III When an asset's beta is more than 1, the asset's return should be more than 1%. IV Investors are only compensated for taking diversifiable risk. Group of answer choices 1. I and III 2. II and III 3. III and IV

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Q8. Which of the following statements are INCORRECT?

I Beta measures non-diversifiable risk.

II Market's beta is always 1.

III When an asset's beta is more than 1, the asset's return should be more than 1%.

IV Investors are only compensated for taking diversifiable risk.

Group of answer choices
1. I and III
2. II and III
3. III and IV
4. I and II
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