Holding everything else constant, increase in beta----------, select other option for decrease ----------------as well in beta, and also explain other options,

Select one:

a) suggests, that the return of the investment is more exposed to market changes.

b) suggests that the unsystematic risk is higher.

c) will lead to increasing required returns.

d) will lead to decreasing required returns.

e) suggests, that the return of the investment is less exposed to market changes.

Assuming that project positive NPV (with conventional cash flow stream) it must be true that

Select one:

a) WACC < IRR

b) WACC = IRR

c) WACC > IRR

d) WACC < 0

In a two-stock portfolio the risk reduction of diversification will be the highest if, Also, In a two-stock portfolio the risk reduction of diversification will be the Lowest if

Select one:

a) the correlation is 0

b) the correlation - 1

c) the correlation is 1

d) the covariance is 0