1. In the context of the CAPM, the relevant risk is: a. Unique Risk b. Market risk c. Standard deviation of returns. d. Variance of returns e. Derivatives risk. 2. According the CAPM a well-diversified portfolio's rate of return is a function of: a. Systematic risk b. Unsystematic risk c. Unique risk d. Reinvestment risk e. Credit risk f. Derivatives risk 3. The RF rate and the expected market rate of return are 6 and 12% respectively. According the CAPM, the expected rate of return on Stock X with a beta of 1.2 is: a, b. c. d. e. f. 6% 14.4% 12% 13.2% 18% 12.9%