An Equity Security with Systematic Risk Equal to the Average

An equity security with systematic risk equal to the average amount of systematic risk of all equity securities in the market:

A) has a market beta equal to one.
B) should expect to earn the same rate of return as the average stock in the market portfolio.
C) gives no insight into the risk premium of stock.
D) Both " has a market beta equal to one" and " should expect to earn the same rate of return as the average stock in the market portfolio"  are correct.

Correct Answer:

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