2 mark. tok be irrelevant A) Sylematie Rink (5) Unostensatic Riat C) Market Riak o) Non-Diversifiable Risk G) The Syslematic Portion of a Surprise 43) The most important reason to diversify a portfolio is to: 2 marks A) Increase both Returns and Risks B) Eliminate All Risks C) Eliminate Asset-Specific Risk D) Eliminate Systematic Risk E) Lower both Returns and Risks 44) Assume a stock experiences an actual return that is above the security market line. An analyst can safely conclude that the stock has: 3 marks A) Mere systematic risk than the overall market B) More risk than that warranted by CAPM C) A higher return than expected for the level of risk assumed D) Less systematic risk than the overall market E) A retum equivalent to the level of risk assumed 2 mark. tok be irrelevant A) Sylematie Rink (5) Unostensatic Riat C) Market Riak o) Non-Diversifiable Risk G) The Syslematic Portion of a Surprise 43) The most important reason to diversify a portfolio is to: 2 marks A) Increase both Returns and Risks B) Eliminate All Risks C) Eliminate Asset-Specific Risk D) Eliminate Systematic Risk E) Lower both Returns and Risks 44) Assume a stock experiences an actual return that is above the security market line. An analyst can safely conclude that the stock has: 3 marks A) Mere systematic risk than the overall market B) More risk than that warranted by CAPM C) A higher return than expected for the level of risk assumed D) Less systematic risk than the overall market E) A retum equivalent to the level of risk assumed 2 mark. tok be irrelevant A) Sylematie Rink (5) Unostensatic Riat C) Market Riak o) Non-Diversifiable Risk G) The Syslematic Portion of a Surprise 43) The most important reason to diversify a portfolio is to: 2 marks A) Increase both Returns and Risks B) Eliminate All Risks C) Eliminate Asset-Specific Risk D) Eliminate Systematic Risk E) Lower both Returns and Risks 44) Assume a stock experiences an actual return that is above the security market line. An analyst can safely conclude that the stock has: 3 marks A) Mere systematic risk than the overall market B) More risk than that warranted by CAPM C) A higher return than expected for the level of risk assumed D) Less systematic risk than the overall market E) A retum equivalent to the level of risk assumed 2 mark. tok be irrelevant A) Sylematie Rink (5) Unostensatic Riat C) Market Riak o) Non-Diversifiable Risk G) The Syslematic Portion of a Surprise 43) The most important reason to diversify a portfolio is to: 2 marks A) Increase both Returns and Risks B) Eliminate All Risks C) Eliminate Asset-Specific Risk D) Eliminate Systematic Risk E) Lower both Returns and Risks 44) Assume a stock experiences an actual return that is above the security market line. An analyst can safely conclude that the stock has: 3 marks A) Mere systematic risk than the overall market B) More risk than that warranted by CAPM C) A higher return than expected for the level of risk assumed D) Less systematic risk than the overall market E) A retum equivalent to the level of risk assumed