$6$:$04$

HW$8$

Question $12(10$ points$)$

Gambling is an example of riskbehavior because the gambler to get their risk

a seeking; pay; increased

b averse; pay; reduced

c averse; is compensated; increased

d seeking; is compensated; increased

Question $13(10$ points$)$

Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio?

a Adding more such stocks will reduce the portfolio's unsystematic, or diversifiable, risk.

b Adding more such stocks will reduce the portfolio's market risk but not its unsystematic risk.

c Adding more such stocks will increase the portfolio's expected rate of return.

d Adding more such stocks will reduce the portfolio's beta coefficient and thus its systematic risk.

e Adding more such stocks will have no effect on the portfolio's risk.