1.

The systematic risk principle states that the expected return on a risky asset depends only on which one of the following?

		Company-specific risk
		Diversifiable risk.
		Systematic risk
		Unsystematic risk

2).

A company's stock has a beta of 1.04, the risk-free rate is 4.25%, and the total market return is 9.75%. What is its required rate of return?

		4.25%
		9.97%
		11.95%
		12.83%

3).

An investor has a $100,000 stock portfolio. $32,000 is invested in a stock with a beta of 0.75 and the remainder is invested in a stock with a beta of 1.38. These are the only two investments in his portfolio. What is his portfolios beta?

		0.75
		1.18
		1.29
		1.38