Exhibit 6
Asset	Return	Beta	Standard Deviation
A	8%	-0.54	16%
B	9%	0.79	19%
C	10%	1.05	23% Use Exhibit 6. Given the data in the table, which asset possesses the greatest amount of systematic risk? A. Asset A B. Asset B C. Asset C D. Both A and C E. It is impossible to tell given the information. You hold a diversified portfolio consisting of $2,000 investment in each of five different stocks: The first stock has a beta of 0.68, the second stock has beta of 1.56, the third stock has beta of 0.94, the fourth stock has beta of 1.92 and the fifth stock has beta of 1.45. Assume that the market return will be 9.65 percent and the risk-free rate is 3.20 percent. What is the total risk premium of the portfolio? A. 7.65% B. 8.12% C. 8.45% D. 8.96% E. 9.50%