If you desire no diversification, you should search for stocks with a correlation coefficient equal to:

• A) +1.0.
• B) 0.0.
• C) -1.0.
• D) +0.5.

According to the capital asset pricing model the expected return on shares in the Gamma Corporation is 10.6%.The beta value associated with these shares is 1.1 and the risk free rate of interest is 4%.Given this information, the expected return on market portfolio is:

• A) 6%
• B) 10%
• C) 10.6%
• D) 6.2%

Estimated beta for ABC Corporation is 1.25 implies that:

Group of answer choices

• A) if the market return increase by 1% the return on ABC Corporation return will decrease by 1.25%.
• B) if the return for ABC Corporation increase by 1% the market return will also increase by 1.25%.
• C) if the return for ABC Corporation increase by 1% the market return will also decrease by 1.25%.
• D) if the market return increased by 1% the return on ABC Corporation will increase by 1.25%.