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Question 7 1 pts When investors form well diversified portfolios of stock O they will be taking on extra risk that will not be rewarded

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Question 7 1 pts When investors form well diversified portfolios of stock O they will be taking on extra risk that will not be rewarded by the market. they will increase expected return higher than that of any one stock. O the company specific (unsystematic) risk will be eliminated. the market (systematic) risk of the portfolio will be eliminated. they will eliminate all risk of investing. Question 8 1 pts Netflix's stock has high total and unsystematic risk, but low systematic risk (Beta=0.9). Given this information, which of the following is expected? Netflix's bonds will have very low yields. O Given the high overall risk and low systematic risk, investors should not invest in Netflix's stock. O Netflix's stock will have a relatively lower required return. O Investors will be very smart to invest 100% of their money in Netflix stock. Investors should expect to earn high (above average) returns on Netflix stock when held in a portfolio as it has high risk

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