1. Which of these risks will a diversified investor likely not need to worry about?

a. A computer hack erases all electronic financial records of everyone in the country.

b. A firm's key advertising executives quit to start their own company.

c. A highly contagious virus emerges that turns humans into zombies.

Group of answer choices:

a only

b only

c only

a and b

a and c

b and c

will not need to worry about any of them

2.

Your portfolio comprises four investments, with an equal dollar value invested in each. The four investments are 1) the S&P 500 market portfolio, 2) shares of Facebook stock, 3) shares of Netflix stock, and 4) cash in a bank savings account which pays 1.95% interest each year. The CAPM betas for Facebook and Netflix are 1.32 and 1.65, respectively. What is the beta of your entire portfolio? Group of answer choices:

a) 0.72

b) 0.84

c) 0.99

d) 1.17

e) 1.22

f) cannot be determined