Lo4-14 A stock has an
expected return of 13.6 percent, the risk-free rate is 3.7 percent, and the
market risk premium is 7.1 percent. What must the beta of this stock be?
L02-11.6 Diversification true or false the most important
characteristic in determining the expected return of a well-diversified
portfolio is the variances of the individual assets in the portfolio. Explain.