Q1. When I conducted an analysis of IBM many years ago, I calculated a beta of 0, though the data bases reported its beta was 1.0. There could have been several reasons for this. Among them a change in IBM assets or a change in debt during the measurement period, thus severely impacting the beta calculation. T/F?

Q2. Betas are a function of business and financial risk. The volatility of the firm's cash flows reflect these risks. T/F?

Q3. Once a portfolio is fully diversified, the standard deviation of a security is no longer a valid measure of risk. This is because the portfolio's firm specific risk is reduced or eliminated once it is placed in the portfolio. T/F?

Group of answer choice