Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines? a. Unsystematic risk b. Non-diversifiable risk c. Systematic risk d. Market risk Snacks Inc. has a mean expected return of 15%, with a standard deviation of 8%. The CFO is going to the bank to discuss a large loan. The banker asks what range of returns, with a 95% confidence level, will contain Snacks true expected returns next year. a. (-1%, 31%) b. (7%, 23%) c. (7%, 15%) d. Cannot calculate due to the lack of information Vaughn Corporation common stock has a required return of 17.5% and a beta of 1.75. If the expected risk-free return is 3%, what is the expected return for the market based on the CAPM? a. 11.29% b. 15.27% c. 14.29% d. 1335% The category of securities with the highest historical return is A. Small company stocks B. Large company stocks C. Government bonds D. Corporate bonds Assume that you have exist100,000 invested in a stock with a Beta of 0.85, exist100,000 invested in a stock with a Beta of 1.05, and exist300,000 invested in a stock with a Beta of 1.25. What is the beta of your portfolio (rounded to the nearest hundredth)? A. 0.99 B. 1.11 C. 1.02 D. 1.13