1. Using the equation for computing the systematic risk, which of the following has a direct (positive) relationship with the value of beta?

1. Covariance between the stock return and the market return
2. Std deviation of the stock
3. Std deviation of the market return
4. Variance of the market return

2. Which of the following has a direct (positive) relationship with the value of beta?

1. Unsystematic risk
2. Inflation
3. GDP
4. None of the above

3. Which of the following has a negative relationship with the value of beta?

1. Covariance between the stock return and the market return
2. Std deviation of the stock
3. Std deviation of the market return
4. Variance of the market return
5. Both c and d