1-The market risk associated with an individual stock is measured by ?

A.Standard deviation of the return on the stock

B.Standard deviation of the return on the market

C.Beta of the stock

D.Coefficient of variation of return on the stock

E.Coefficient of variation of return on the market.

2-Inflation, recession and high interest rate are economic event which can be identified with ?

A.Company-specific risk that can be diversified away

B.Non-diversifiable risk

C.Systematic risk that can be diversified away.

D.Diversifiable risk

E.Unsystematic risk that can be diversified.

3-The vertical (y axis) intercept of the security market line (sml) indicates the return on the individual asset when the realized return on an average stock (with a beta of 1.0) is zero

True or False

4-The slope of the security market line (sml) is determined by the value of beta?

True or false