QUESTION 1 A market index is used to measure performance of the overall market return. O True O False QUESTION 2 Although unique risk is present in differing amounts, individual stocks are: O exposed to the same amount of market risk. O exposed to differing amounts of market risk also. O not exposed to market risk; only the general economy is subject to market risk. O able to diversify away their market risk. QUESTION 3 Beta measures a stock's sensitivity to market risks. O True O False QUESTION 4 What is the beta of a three-stock portfolio including 25% of Stock A with a beta of.90, 40% Stock B with a beta of 1.05, and 35% Stock C with a beta of 1.73? O 1.05 O 1.17 O 1.22 O 1.25