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28) An investor holding a well-diversified portfolio will not be exposed to A) default risk B) systematic risk C) unsystematic risk D) Inflation risk 29)

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28) An investor holding a well-diversified portfolio will not be exposed to A) default risk B) systematic risk C) unsystematic risk D) Inflation risk 29) 29) 29) One proxy for the expected market retum would be A) the rate of retum on the Standard & Poor's 500-stock Index B) the rate of return on short-term U.S. Treasury securities C) beta D) the rate of retum en long-term US Treasury securities 30) in the Capital Auet Pricing Model, the term represent A) the market risk premium B) the unayemate risk premium for a security C) the expected return of a security D) the security market line 31) 1 the expected return on Treasury securities is 7 percent, the expected on the market portfolio is 10 percent, and the beta of the Ton Lighting Corp. is 1.21.then the required return on TLC stock is A) 395 percent B) 10.75 percent C) percent D) pero 31) 22 32) The "January effect describes a tuation which the CAPM does not adequately explain, mely the finding that A) common stock held from December to any tends to produce higher retum than in other months B) the number of common stocks traded in any tends to be lower than in the rest of the yer C) the price of bonds tends to increase the first week in January D) the shares of small companies are traded mom fregantly during January than during the rest of the year 300 33) The Isa meniure of the variability of a distribution around the retum ofan Individual security or portfolio A) collident of variation 3) cotton codent covariance Dandard deviation 30 6) You estimate that the characteristic line for U.S. Blivet common stock has a slopee. the over run) of 13Therefore, this common stock is consid used on its estimated A) B) undervalued defensive D) overved SHORT ANSWER. Write the word or phrase that best completes each statement or answer the question 3) The Www Com os currently wiperly 35 min

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