19. Assume that two investors each hold a portfolio, and that portfolio is their only asset. Investor A's portfolio has a beta of minus 2.0, while Investor B's portfolio has a beta of plus 2.0. Assuming that the unsystematic risks of the stocks in the two portfolios are the same, then:

the two investors face the same amount of risk.

Investor As portfolio has more risk than Investor Bs portfolio.

Investor Bs portfolio has more risk than Investor As portfolio.

The relative risk of the portfolios cannot be determined without more information.

None of the above answers is correct.

20. With reference to Portfolios A and B in the previous question, the holders of either portfolio could:

Lower their risks, and by exactly the same amount, by adding some stocks with beta = 1.0.

Lower their risks, and by exactly the same amount, by adding some stocks with beta > 1.0.

Lower their risks, and by exactly the same amount, by adding some stocks with beta < 1.0.

Increase their risks, and by exactly the same amount, by adding some stocks with beta > 2.0.

Increase their risks, and by exactly the same amount, by adding some stocks with beta < -2.0.

All of the above answers are correct.

None of the above answers is correct.