. Question 25 1 pts The measure of beta associates most closely with: the risk-free return. unexpected risk. systematic risk. O idiosyncratic risk. unsystematic risk. Question 26 1 pts Which one of the following is the best example of systematic risk? People become diet conscious and avoid fast food restaurants The price of lumber declines sharply The airline pilots of a firm go on strike The Federal Reserve increases interest rates A hurricane hits a tourist destination Question 27 1 pts Standard deviation measures risk while beta measures risk. total; unsystematic unsystematic systematic nondiversifiable; diversifiable unsystematic; total total; systematic D Question 28 1 pts The primary purpose of portfolio diversification is to: lower both returns and risks. eliminate asset-specific risk. eliminate all risks. eliminate systematic risk. increase returns and risks