Question: T/F 6. Beta measures diversifiable risk while standard deviation measures systematic risk. 7. The CAPM estimates the required rate of return on a stock held

T/F

6. Beta measures diversifiable risk while standard deviation measures systematic risk.

7. The CAPM estimates the required rate of return on a stock held as part of a well-diversified portfolio.

8. Adding stocks with higher standard deviations to a portfolio will necessarily increase the portfolios risk.

9. In the flexible/floating exchange rate system of all major currencies, the foreign exchange rate is determined by supply and demand.

10. An expansionary monetary policy will cause an appreciation of the domestic currency.

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