Multiple Choice

$1$ point

As diversification increases, the unsystematic risk of a portfolio approaches

infinity.

$0.$

$(n-1)n.$

$1.$

Multiple Choice

$1$ point

Suppose you forecast that the market index will earn a return of $12\%$ in the coming year. Treasury bills are yielding $4\%.$ The unadjusted $$ of Mobil stock is $1\mathrm{.}10.$ A reasonable forecast of the return on Mobil stock for the coming year is if you use a common method to derive adjusted betas.

$12\mathrm{.}5\%$

$14\mathrm{.}5\%$

$13\mathrm{.}0\%$

$15\mathrm{.}0\%$

Multiple Choice $1$ point

Rosenberg and Guy found that $$ helped to predict firms' betas.

all of the options