1) the capital asset pricing model measure the sensitivity of the firm to which of the following types of risk?

A) international risk

B) Market Risk

C) Firm Specific Risk

D) Industry Specific Risk

2) If evaluating the results of a regression, which of the following is the best indicator that the independent variable is strongly correlated to the dependent variable?

	a.	A T-Statistic of 1 with a p value of .4 associated with the coefficient on the independent variable.
	b.	A high standard error on the estimate of the slope of the line.
	c.	A T-Statistic of 4 with a p-value of .001 associated with the coefficient on the independent variable.
	d.	An R squared value of .45