Match each question with its short answer.

What is the beta of the market portfolio?	Answer 1Choose...Risk of each stockRisk of the portfolio1High betaNoYESLow beta
What do (smart) investors care about: the risk of each stock in a portfolio, or the risk of the entire portfolio only	Answer 2Choose...Risk of each stockRisk of the portfolio1High betaNoYESLow beta
Which stocks should have/offer higher return: low-beta or high-beta?	Answer 3Choose...Risk of each stockRisk of the portfolio1High betaNoYESLow beta
Do correlation, covariance, and market-beta always have the same sign?	Answer 4Choose...Risk of each stockRisk of the portfolio1High betaNoYESLow beta
Should investors prefer stocks with high beta or low beta?