11. Which of the following statement about portfolio beta is correct? a. Iftwo portfolios have the same portfolio weights, but different dollar values, their betas are different. b. Portfolio beta is larger than the beta of each individual stock in the portfolio. c. Portfolio beta should always be smaller than 1. d. If the return of an asset has zero correlation with the market portfolio returns, then the beta of this asset is zero. 12. You have $1,000. A bank pays 10 % interest with certainty. Alternatively, you can take a gamble that costs $1,000 today with the chance to receive either $2,200 or $0 with equal probability. Ifyou choose to take the gamble, which of the following is true a. You are risk loving b. You have a lower expected return in the gamble than in the bank deposit. c. You have a higher expected return in the gamble than in the bank deposit. d. You are risk averse e. You are going to lose money for sure 13. Suppose you invested in an asset that started with $100 two years ago. Then the asset value declined to $50 in the last year, but bounced back to $100 in this year. Which statement below about the return of this asset is correct? a. The arithmetic average of this asset return is 0%. b. The geometric average of this asset return is 25% c. The arithmetic average is less reasonable than the geometric average d. The geometric average measures the average compounded returns during the last two ye dntianehin between beta and