QUESTION 30 Compared to a domestic portfolio, a portfolio of equal size that is diversified across countries (an international protfolio will have: a. Less systematic risk. b. Less unsystematic risk. C. A greater rate of return. O d. A higher expected value. QUESTION 31 The beta of a portfolio is calculated as the: a. Geometric average of the betas of the component securities b. Arithmetic average of the betas of the component securities. c. Weighted average of the betas of the component securities. d. Sum of the betas of the component securities. QUESTION 32 Smart beta investing is an effort to: a. Use traditional betas in a smarter way. b. Respond more rapidly to market trends. C. Combine the benefits of active and passive investing. d. Focus more on beta and less on alpha in making investment decisions. QUESTION 33 If the required return from the market is 18% (this is the expected return for the S&P), the risk-free rate is 11%, and the beta of Schmeichel Corp. is 1.2, what is the required rate of return on Schmeichel stock? a. 8.40.% O b. 11.00%. c. 13.20%. O d. 19.40%