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Which of the following statements is CORRECT?
1) The slope of the Security Market Line is beta.
2) Any stock with a negative beta must in theory have a negative required rate of return, provided rRF is positive.
3) If a stock's beta doubles, its required rate of return must also double.
4) If a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative.
5) If a stock has a beta of to 1.0, its required rate of return will be unaffected by changes in the market risk premium.