The first step in learning to live with other cultures is the realization that there are other cultures.

White Company stock has a beta of 2 and a required return of 23%, while Black Company stock has

a beta of 1.0 and a required return of 14%. The standard deviation of returns for White Company is 10% more than the standard deviation for Black Company. The risk-free rate of return according to the CAPM is A) 5%. B) 6%. C) 4%. D) impossible to determine with the information given.

Beta is a measurement of the relationship between a security's returns and the general market's returns

Indicate whether this statement is true or false.