Question: Can someone answer these questions? 12. When a stock has higher standard deviation in its returns, then: vestors who invest in this stock should be

Can someone answer these questions?

12. When a stock has higher standard deviation in its returns, then: vestors who invest in this stock should be compensated more stand a. In b. The stock has higher beta C. The stock has a higher probability of achieving extremely high or low d. The stock is a good choice of investment returns en you add another stock into your portfolio, your portfolio: a. Should contain more risk b. Should contain less risk c. Should compensate you more d. Should be a better portfolio than before 14. A stock's beta measures the: a. Market risk premium on the stock b. Average return on the stock c. Difference between the return on the stock and the return on the market portfolio Sensitivity of the stock's return to those of the market portfolio d. 15. The slope of the SML is: a. Market risk premium b. Beta c. Risk-free rate d. Stock risk premium

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