1A. The weather report says that a devastating and unexpected freeze is expected to hit Florida tonight during the peak of the citrus harvest. In an efficient market, one would expect the price of Florida Orange's stock to

		increase immediately.
		gradually decline for the next several weeks.
		drop immediately.
		unable to determine.
		gradually increase for the next several weeks.

1B.

Which of the following is not a source of systematic risk?

		Interest rates
		The business cycle
		The inflation rate
		Exchange rates
		Personnel changes

1C.

Given an optimal risky portfolio with expected return of 16%, standard deviation of 20%, and a risk-free rate of 4%, what is the slope of the best feasible CAL?

		0.36
		0.14
		0.31
		0.60
		0.08