answer true or false

11 The market has a Beta of 0and the niskfree asset has a Beta of 1 12. Unsystematic risk can be eiminated through diversification, but systematic risk cannot History has shown that large stocks have been the most risky of all asset classes. 11. 14 The extra returm above the risk-ree rate that investors receve as compensation for risk is called the risk premium Answer "A" or "8 for each of the following Put your anwer in the colume to the right Stock A is a preferred stock and stock Bis a common stock Which stack has woting 15. rights? XYZ Inc. issues bonds as well as common stocks to public investors Their bends have and 16. average yield to maturity of A Which rate should be higher? and their stock has arequired rate of return of 17. The folowing 2 stocks currently pay a diidend of $1 and have a required reun of 10% Which stock has higher value? A. A common stock with a constant growth rate of S% 8A preferred stock You calculated the value of a stock to be $32. Which of the following is true? The stock is currently priced at 530 A. You should buy the stock because t is undervalued B. You should not buy the stock because it is overvalued