14. Which of the following regarding Beta is true A. Stocks with a higher Betas will have lower required rates of return B. Beta is a measure of how much diversifiable risk a stock portfolio has C. Stocks with beta of less than 1 are more volatile than the average stock D. Beta measures a stock's stand-alone Risk E. Beta measures how risky a stock is relative to the entire market

15. You just won the lottery. Congrats!!! You are given the choice of receiving 25,000 at the end of each year for the next 20 years, or a lump sum today. If you can earn a return of 8% on your investment, what is the minimum amount you should be willing to accept today as a lump-sum payment? Round your answer to the nearest hundred dollars. A. $600,000 B. $294,500 C. $212,800 D. $245,500 E. $227.900

17. Your parents are considering adding one (and only one) additional stock to their investment portfolio. They are risk-averse and already hold a well-diversified portfolio. All the potential new stocks have the same expected returns of 12%. Which stock should your parents add to their portfolio (assuming that expected return is sufficient to compensate for risk)? A. They should be indifferent since the expected returns are the same B. The one with the smallest beta C. One with the smallest standard deviation D. One with the highest required rate of return E. Additional Information is required