1.) Which of the following statements are true?

a.) only yield is relevant to determine reward

b.)beta measures the risk of owning a group of assets

c.)beta is a measure of market risk

d.) both beta statements are true

2.) Finish the sentence "investors_______"

a.) are risk tolerant and require a premium for bearing risk

b.)are risk adverse and require a premium for bearing risk

c.) are risk adverse and require a discount for bearing risk

3.) The inflation rate is expected to be 2.3% and treasury bills are currently cover 1.3% the risk free rate will be

a.)2.2%

b.)3.5%

c.) 1.3%

d.) not enough information given