1. Which of the following pairs refer to the same type of risk? A. Diversifiable risk and market risk B. Undiversifiable risk and unsystematic risk C. Systematic risk and firm-specific risk D. Total risk and standard deviation of returns 2. Which of the following statements about short selling is least accurate? A. A short seller is required to set up a margin account. B. A short sale involves securities the investor does not own. C. A short seller loses if the price of the stock sold short decreases. D. A stop-buy order is used to limit the potential losses on a short sale. 3. Which of the following asset classes has historically had the highest returns and standard deviation? A. Large-cap stocks B. Small-cap stocks C. Long-term corporate bonds D. T-bills to a 4. A T-bill quote sheet has 180-day T-bill quotes with a 3.45 bid and a 3.36 ask. If the bill has a $10,000 face value, an investor could sell this bill for dealer. A. $9,827.50 B. $9,980.16 C. $9,877.24 D. $9,880.63