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1. The risk of the portfolio is the weighted average of the betas of each of the individual stocks in the portfolio. True False 2.

1. The risk of the portfolio is the weighted average of the betas of each of the individual stocks in the portfolio.

True

False

2. Because of default risk, the interest rate charged on AAA Corporate bonds is always higher than the interest rate charged on BB corporate bonds of a similar maturity.

True

False

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