Asset A has an expected return of 10%. The expected market return is 14% and the risk-free rate is 5%. What is asset As beta? Select one: O a. 0.67 O b.0.88 O c 0.55 O d. 0.33 O e. 1.15 Which bond would most likely possess the least degree of interest rate risk? Select one: O a 8% coupon rate, 10 years to maturity O b.8% coupon rate, 20 years to maturity O 0.12% coupon rate, 10 years to maturity O d. 12% coupon rate, 20 years to maturity O e. 10% coupon rate, 10 years to maturity Diversification works because Diversification works because Select one: O a. Stocks earn higher returns than bonds. O b. Forming stocks into portfolios reduces the standard deviation of returns for each stock O c Unsystematic risk exists. O d. Portfolios have higher returns than individual assets. O e. Firm-specific risk can be never be reduced. Ed Lawrence has OMR100,000 invested. Of that. OMR30,000 is invested in IBM stock, OMR25,000 is invested in T-bills, and the remainder is invested in corporate bonds. Which of the following is true regarding his portfolio? Select one: O a. If IBM has a beta less than one the portfolio has a beta greater than one O b. Changes in the return on IBM stock will have the greatest impact on changes in the portfolio return. O c Ed has 70% of his portfolio invested in risk-free assets. O d. Ed has 55% of his portfolio invested in corporate bonds. e. Ed has 30% of his portfolio invested in stocks