I. Multiple choice questions (2 points each): Please cirele the correct answer. 1. Under CAPM investors should only get compensated for bearing a) non-systematic risk b) firm-specific risk c) systematic risk d) none of the above 2. Which one of the following investment companies invests in a portfolio that is fixed for the life of the fund? a) mutual fund b) money market fund c) managed investment company d) unit investment trust 3. The type of mutual fund that primarily engages in market timing is called a) a sector fund b) an index fund c) an ETF d) an asset allocation fund