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Question 16 In CAPM the risk of the market is assigned a value of: variance equals 1. standard deviation equals 1. standard deviation equals 0.

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Question 16 In CAPM the risk of the market is assigned a value of: variance equals 1. standard deviation equals 1. standard deviation equals 0. beta equals 0. beta equals 1. Question 17 The primary purpose of portfolio diversification is to: lower both returns and risks eliminate all risks Increase returns and risks eliminate form-specific risk eliminate systematic risk

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