In The following four questions, please make only one choice per question, you have 10 minutes, please remember that this is NOT a group work; that is, you need to do it on your own? When firms carry both the market and firm-specific risks, only the firm-specific risk will be diversified away when we combine many firm's stocks into a portfolio. a. True b. False Assume that you have $300,000 Invested in a stock that has a beta of 1.1, $150,000 invested In a stock with a beta of 0.4, and $400,000 Invested in a stock with a beta of 1.0. What is the beta of your portfolio? a. 0, 50 b. 0, 76 c. 0, 93 d. 1, 10 Howard Corporation has a beta equal to 2.0 and a required return of 18% based on the CAPM. If the market risk premium is 7.5%, what is the risk-free rate of return? a. 1.5% b. 3.0% c. 7.5% d. 10.5% Suppose that ABC Corp's beta is 1.2, If the market return is 6% and the risk-free interest rate is 3%, then the expected return ABC Corp's stock is____. a. 5.4% b. 6.0% c. 7.8% d. 10.2%