4. All of the following are "incorrect" definitions of Beta except: a. A measure of volatility of a security's returns relative to the returns of a broad-based market portfolio of securities. b. The ratio of the variance of market returns to the covariance of returns on a security with the market c. The inverse of the slope of the security regression line d. All of these answers are correct 5. A security with a beta value of 0.94 is a security that a. Has average systematic risk b. Has above-average systematic risk c. Has no unsystematic risk d. Has below-average systematic risk 6. When considering the risk of investment in a stock that is widely traded, the most relevant risk to consider is its a. Unsystematic risk b. Standard deviation c. Covariance risk d. Systematic risk 7. Walker Trucking, Inc. common stock is currently selling for $40 per share. Security analysts at Merrill Lunch, Inc. have assigned the following probability distribution to the price (and rate of return on the stock one year from now: Price Rate of Return Probability $13 -10% 0.40 0.35 0.15 21% Assuming that Walker is not expected to pay any dividends during the coming year, determine the expected rate of return on Walker Stock. 6 25% 14 0% 24 0.10 a. 6.85% b. 0% C. 10% d. None of the answers provided is correct