[Solved] Which of the following statements is true?

Q.	Which of the following statements is true?
A.	A stock with a beta of 2 will always have a higher return than that a stock with a beta of 1
B.	Testing CAPM is done ex-post while CAPM measures required rate of returns
C.	The beta of a portfolio is the beta of the individual stocks multiplied by the standard deviation of each stock
D.	Generally speaking stocks with higher betas tend to have lower total risk
Answer» B. Testing CAPM is done ex-post while CAPM measures required rate of returns

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