question 8

If we are able to fully diversify, what is the appropriate measure of risk to use?

	I.	Expected Return
	II.	Standadard Deviation
	III.	Coefficient of Variation
	IV.	Beta
	V.	All of the options specified here

question 7

A stock with a beta greater than one has returns that are __________ volatile than the market and a stock with a beta of less than one exhibits returns which are ____________ volatile than those of the market portfolio.

	I.	more; more
	II.	less; less
	III.	less; more
	IV.	more; less
	V.	None of the options specified here.

question 2

Tamika is considering a security with the following possible rates of return:

Probability Return(%)

0.20 9.60

0.30 12.00

0.30 14.40

0.20 16.8

Calculate the expected rate of return and the standard deviation of the returns.

	I.	13.2%;6.05%
	II.	13.2%; 2.46%
	III.	7.92%; 6.05%
	IV.	7.92%; 2.46%
	V.	None of the options specified here