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Outlook 2:05 PM more 61% 13. Beta is best described as a measure of a. non-diversifiable risk b. unsystematic risk c. total risk d. diversifiable

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Outlook 2:05 PM more 61% 13. Beta is best described as a measure of a. non-diversifiable risk b. unsystematic risk c. total risk d. diversifiable risk 14. What is the market return given the following information? The investment's required return 12% Risk free rate is 7% Investment's beta 1 a. 5% b. 12% c. 19% d. 10% 15. If two variables are perfectly positively correlated, it means: a. their values will change inversely to each other b. they have a correlation coefficient of -1 c. they change linearly in perfect lockstep d. they have a correlation coefficient of zero 16. Which of the following methods would NOT result in a reduction of business risk? a. reduce sales volatility b. increase fixed operating costs c. reduce operating leverage d. diversify 17. The CAPM risk measure reflects: a. nonsystematic risk b. diversifiable risk c. non-diversifiable risk d. total risk 18. Which of the following statements is (are) true for a risk averse investor? a. If two investment alternatives have equal returns, choose the one with lower risk b. If two investment alternatives have equal risk, choose the one

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