7. If a stock does not pay dividends which of the B. The required return must equal the capital gains C. The company is likely to be sued by shareholders following must be true? A. The stock must have a value of so. 1o.which of the following descroes a toto that is A. A well-diversified portfolio has no B. A well-diversified portfolio has no systemani rk C. A well-diversified portfolio has no sk D. A well-diversified portfolio must have a beta of ield The market must expect that the stock will decrease in price. D. 8. Which one of the following portfolios will have a beta of zero? 11.The purpose of diversification is to do which of he A. A portfolio that is equally as risky as the overall following? A. Increase the expected risk premium B. Reduce the beta of the portfolio to zero C. Increase the security's risk premium D. Reduce the portfolio's systematic risk level market. B. A portfolio that consists of a single stock. C. A portfolio comprised of only US Treasury bonds. D. No portfolio can have a beta of zero. Which one of the following categories has the 12. The Capital Asset Pricing Model states that the highest risk premium for the period 1926-present? A. Small-company stocks B. US Treasury Bills expected return on a security depends on which of the following? (Circle your choice s). You may choose more than one. i.pure time value of money as measured by the risk- C. Long-term government bonds free rate ii.amount of systematic risk as measured by beta ii.the reward for bearing systematic risk as measured D. Large-company stocks by the market risk premium iv.the reward for bearing risk as measured by the standard deviation the table below to answer the next 3 questions