4:36 PM l T-Mobile bbhosted.cuny.edu 10 of 13 1) As yon add more stocks to a portfolio 31 A. specific risk is increasingly diversified away. B. specific risk at first falls, then rises C. market risk is increasingly diversified away D, market risk declines but specific risk rises 32) lf a security plots below the security market line, it is 32) A. underpriced, a situation that should be temporary. B. ignoring all of the security's specific risk C. a defensiv D. offering too little retum to justify its risk e security, which expects to offer lower returns 33) A stock's beta measures the: 33) A. average return on the stock B. difference between the return on the stock and the return on the market portioho. C. sensitivity of the stock's returns to those of the market portfolio D. market risk premium on the stock