8. The stock beta of a firm reflects: 1) the unsystematic risk of the firm 2) the market risk of the S&P 500 Stock Index 3) the unsystematic risk for the industry 4) the risk preferences of the board of directors 5) the non-diversifiable business and financial risks facing the firm 9. There are benefits to holding a diversified stock portfolio if the correlation coefficient between the expected returns on the component stocks: 1) exceeds two 2) exceeds one 3) equals one 4) is below one 5) correlation coefficients are irrelevant to the question of diversification. 10. For valuation of bonds, the following relationship exist except 1) As the current interest rate increase, the value of the bond increase. 2) The interest rate of long-term bonds is higher than that of short-term bonds. 3) The higher the coupon rate of bond, the higher the value of the bond. 4) Whether sold at discount or premium, as the maturity date approaches, the market value of the bond approaches its par value