There are in total 9 questions 1. Which portfolio has the least risk during the period 1900 2011? (0.5) A. B. Common stocks Government bonds Treasury bills None of the answers D. Answer 2. The type of the risk that can be eliminated by diversification is called: (05) A. B. C. D. interest rate default risk riskmarketrisk unique risk Answer is the slope on the Security Market une (as) marketrisk premium (i.e., quity risk premium) risk-free rate market rate of return beta 3. The A. B. C. D. Answer 4. As the number of stocks in a portfoliois increased:(0.5) unique risk decreases and approaches zero market risk decreases unique risk decreases and becomes equal to market risk total risk approaches zero D