The goal of diversification is to eliminate firm-specific risk. systematic risk. market risk. total risk. Mike owns a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.20 and the total portfolio is twice as risky as the market, what must the beta be for the other stock in the portfolio? 2.00 3.50 1.80 1.00 4.80 Question 14 (5 points) Saved The defines the relationship between risk and return. market risk premium. CAPM. volatility. theory of diversification. Peace Music issued bonds eight years ago that now have 17 years to maturity, face value of $1,000, YTM of 8%, and an annual coupon rate of 10%. The bonds make semiannual coupon payments. What is the current price of the bond? $1,184.11 $862.01 $1,297.47 $838.07 Treasury securities are issued by the federal government. low grade debt instruments. known for low liquidity. bonds that can only be held by American citizens. always discount bonds