For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? O a. The beta of the portfolio is larger than the weighted average of the betas of the individual stocks. O b. The beta of the portfolio is less than the weighted average of the betas of the individual stocks. O c. The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation. O d. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks. O e. The riskiness of the portfolio is the same as the riskiness of each stock if it was held in isolation. Which of the following statements is CORRECT? O a. The most likely explanation for an inverted yield curve is that investors expect inflation to increase. O b. The higher the maturity risk premium, the higher the probability that the yield curve will be inverted. O c. Inverted yield curves can exist for Treasury bonds, but because of default premiums, the corporate yield curve can never be inverted. O d. The most likely explanation for an inverted yield curve is that investors expect inflation to decrease. O e. If the yield curve is inverted, short-term bonds have lower yields than long-term bonds. Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists of 3 average stocks? a. Both the diversifiable risk and the market risk of your portfolio are likely to decline. O b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change. O c. The total risk of your portfolio should decline, and as a result, the expected rate of return on the portfolio should also decline. O d. The expected return of your portfolio is likely to decline. O e. The diversifiable risk will remain the same, but the market risk will likely decline