Beta measure indicates:

	A.	The ability to diversify risk
	B.	The change in the rate of return on an investment for a given change in the market return
	C.	The actual return on an asset
	D.	A and C

A safe dollar is always worth less than a risky dollar because the rate of return on a safe investment is generally low and the rate of return on a risky investment is generally high.

	A.	True
	B.	False
	C.	Depends on the investment
	D.	None of the above

As the number of stocks in a portfolio is increased:

	A.	Unique risk decreases and unique risk approaches to zero
	B.	Market risk decreases
	C.	Unique risk decreases and unique risk becomes equal to the market risk
	D.	Total risk approaches to zero