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1. Which of the following is INCORRECT? A. All of a stock's risk could be unsystematic b. A negative beta stock has an expected return
1. Which of the following is INCORRECT? A. All of a stock's risk could be unsystematic b. A negative beta stock has an expected return less than the risk-free rate. c. Anticipated returns on any given stock are always greater than 0. do Two assets with a correlation of -1 could be combined to create a portfolio with a standard deviation of zero (no risk). 2. Which of the following measures the total risk of a portfolio a. Beta b. Standard Deviation c. Correlation Coefficient d. Alpha 3. Which of the following stocks have the highest systematic risk? a. A stock with high correlation to the market and high return volatility. b. A stock with low correlation to the market and a high return volatility. c. A stock with high correlation to the market and a low return volatility. d. A stock with low correlation to the market and a low return volatility. 4. Which of the following companies have the lowest systematic risk? a. A company that sells soups (Campbells), beta=0.60 b. A coffee company (Starbucks), beta=1.20 c. A mid-range clothing store company (Abercrombie & Fitch), beta=1.25 d. A motorcycle manufacturer (Harley-Davidson), beta=2.00
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