11. The square of the standard deviation is known as the ________.

A. Beta

B. Expected return

C. Coefficient of variation.

D. Variance

12. Why companies invest in projects with negative NPV?

A. Because there is hidden value in each project B. Because they have chance of rapid growth

C. Because they have invested a lot

D. All of the given options

13. An investor was expecting a 18% return on his portfolio with beta of 1.25 before the market risk premium increased from 8% to 10%. Based on this change, what return will now be expected on the portfolio?

A. 22.5% B. 20.0% C. 20.5% D. 26.0%

14. Which of the following is the characteristic of a well diversified portfolio?

A. Its market risk is negligible B. Its unsystematic risk is negligible C. Its systematic risk is negligible D. All of the given options