primary purpose of sa) The eliminate asset-specifie risk A) portfolio s to s) increase returns and risks. e lower both returns and risks D) eliminate all risks. E eliminate systematic risk. tic risk is measured by: A) the geometric average. B) the arithmetic average C) the mean. D) the standard deviation. E) beta. of the following statements is correct concerning a portfolio beta? folio beta is a weighted average of the betas of the individual securities A) A portf contained in the portfolio. B) The beta of a market portfolio is equal to zero. C) Portfolio betas range between-1.0 and +1.0. D) A portfolio beta cannot be computed from the betas of the individual securities comprising the portfolio because some risk is eliminated via diversification. E) A portfolio of U.S. Treasury bills will have a beta of +1.0. 82 The systematic risk of the market is measured by a: A) variance of 1. B) standard deviation of 1. C) beta of o. D) beta of 1. E) standard deviation of 0. 87) 88) 88) Total risk is measured by A) standard deviation; variance B) beta; alpha C) alpha; beta D) standard deviation; beta E) beta; standard deviation and systematic risk is measured by 89) Which one of the following is represented by the slope of the security market line? A) Reward-to-risk ratio B) Market standard deviation C) Market risk premium D) Risk-free interest rate E) Beta coefficient 89) 17