1) The ____________________ the coefficient of variation, the ________________ the risk.

a. more stable; higher

b. lower; higher

c. lower; lower

d. higher; lower 2) A beta coefficient of -1 represents an asset that

a. is more responsive than the market portfolio.

b. has the same response as the market portfolio but in opposite direction.

c. is less responsive than the market portfolio.

d. is unaffected by market movement. 3) The beta coefficient of 0 (zero) represents an asset that

a. is unrelated to the market portfolio.

b. is more responsive than the market portfolio.

c. has the same response as the market portfolio.

d. is less responsive than the market portfolio. 4) The higher an asset