A. What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock B with a beta of 1.05, and 35% of stock C with a beta of 1.73?

1.0

1.17

1.22

1.25

B. You want to develop a portfolio containing U.S. Treasury bills and two stocks that is equally as risky as the market. The securities will be equally weighted. If the beta of the first stock is 1.23, what does the beta of the second stock have to be?

0.77
		1.23
		0.23
		1.77

C. The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because the market portfolio:

offers lower returns.
		has less systematic risk.
		diversifies risk.
		has specific risk.

Please answer all parts