measures the risk of a The measures the risk of a security held in isolation while a security held in a well-diversified portfolio. Select one: a. beta, coefficient of variation b. standard deviation; beta c. beta, standard devation d. risk-free rate; market risk premium The preemptive right is important to common shareholders because it: 1 Select one: a. allows managers of the firm to convert their shares of preferred stock into shares of common stock at prices below the current market price b.gives common shareholders priority to receive common dividends over the preferred dividends paid to preferred stockholders c. protects existing common shareholders against a dilution of their ownership by allowing them to purchase a percentage of any new shares issued that is equal to their current percent ownership d allows managers to buy additional shares at a price well below the current market price e protects new shareholders from having existing shareholders create a new class of common stock that has more voting rights per share than the newly issued shares