According to the CAPM, the correlation coefficient between a perfectly diversified portfolio and the market portfolio of all risky assets should be:

-1.00

+1.00

0.00

Between 0 and -1.00

Between 0 and +1.00

17. According to the Single Index Model, the only systematic influence(s) on common stock prices is:

a. growth of the gross national product.

b. company-specific or stock-specific risk.

c. changes in the relative strength of sectors, or industries, of the economy.

d. the return on an index representing the overall stock market.

e. all of the above.

f. none of the above.