$($Security market line$)$ Your father just learned from his financial advisor that his retirement

portfolio has a beta of $1\mathrm{.}87.$ He has turned to you to explain to him what this means.

Specifically, describe what you would expect to happen to the value of his retirement fund if

the following were to occur:

a$.$ The value of the market portfolio rises by $9$ percent.

b$.$ The value of the market portfolio drops by $9$ percent.

c$.$ Is your father's retirement portfolio more or less risky than the market portfolio? Explain.

a$.$ If the value of the market portfolio rises by $9\%,$ then the value of your father's retirement

fund should by $\%.($Select from the drop$-$down menu and round the answer

to two decimal places.$)$

b$.$ If the value of the market portfolio drops by $9\%,$ then the value of your father's retirement

fund should

by $\%.($Select from the drop$-$down menu and round the answer

to two decimal places.$)$

c$.$ Your father's retirement portfolio is

risky than the market portfolio because

your father's retirement portfolio beta, it's systematic risk, is

than the market's

portfolio beta. $($Select from the drop$-$down menus.$)$