A company is considering a rights issue of one new share for every four shares held, at a price of 2.70. The existing shares have a nominal value of 1 and a market value of 3. What is the theoretical ex-rights price? - A 3.00 B 2.85 C 2.94 D 2.70 E None of the above Which of the following statements is/are correct? 1. The CAPM beta reflects diversified investors' exposure to firm-specific risk. 2. Total risk is the sum of systematic risk and unsystematic risk. 3. Portfolio diversification reduces investors' exposure to unsystematic risk A 2 only B 1 and 3 only C 2 and 3 only D. 1,2 and 3 E None of the above Question 21