The beta coefficient of a stock is unsystematic risk systematic risk total risk b. C d. e company specific risk two of the above 7. Refer to the table below. Calculate the beta of a portfolio that includes stocks A, B, and C. The portfolio is composed of 30% A, 40% 8, and 30% table. The betas of the individual stocks are listed in the Stock Beta A 75 1.2 1.8 a. 1.200 b. 1.250 c. 1.245 d. 1.343 e. not enough information provided to calculate portfolio beta a. can be effectively eliminated by portfolio diversification. b. is compensated for by the risk premium. c. is measured by beta. d. is measured by standard deviation. e. is related to the overall economy. 9. A stock has a beta of 1.15, the expected return on the market is 11% and the risk free rate i What is the expected return on the stock? B = 1.15 a. 16.65% ( = 011 b. 12.05% c. 15.60% d. 16.15 % RE = 104 10. What is the expected market risk premium if the expected return on asset A is 14% 2 rate is 5%2 Asset A has a beta of 1.5. a. 6% 1.5 ( .05 5.9% c. 12% d. 19.5% e. 13.5% B C 8. Unsystematic risk: m