Suppose the value of ( b ) is greater than 1 for a particular stock. Show that the variance of ( r(r-rf) ) for this stock is greater than the variance of ( (rm - rf) ).
a) The variance of ( r(r-rf) ) is always greater.
b) The variance of ( (rm - rf) ) is always greater.
c) The variances are equal.
d) Insufficient information to determine.
