QUESTION

1. Investors are compensated based on the amount of what type of risk that they take?

		Diversifiable risk
		Market risk
		Total risk
		None of the above

QUESTION

1. If we take a portfolio of average stocks and diversify away all the risk we can, we would expect to still have a volatility (Standard Deviation) of:

		10%
		20%
		30%
		40%