1. Beta measures which type of risk?

	A.	Stand-alone risk
	B.	Idiosyncratic risk
	C.	Market risk
	D.	Beta is not a risk measure

2. Which type of correlation between stocks helps reduce risk in a portfolio?

3. Should investors expect to be rewarded for carrying idiosyncratic (or standalone) risk?

	A.	Yes- more risk should equate to higher reward
	B.	No idiosyncratic risk can be removed by diversification and therefore should not be rewarded.

4.

If every time Wendys stock goes down, Conagra stock goes up, then these two stocks are

	A.	Positively correlated
	B.	Negatively correlated
	C.	Not correlated