1. We would generally find that the beta of a single security is more stable over time than the beta of the market portfolio.

True or False

2.Cooley Company's stock has a beta of 1.40, the risk-free rate is 25%, and the market risk premium is 5.50%. What is the firm's required rate of return?

A)11.95

B)10.95

C)12.95

D)7.70

E)6.00

3. If an investor buys enough stocks, he or she can, through diversification, eliminate all of the unique risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all systemic risk.

True or False