1. Which of the following statements concerning beta are correct?

   I. Adding stocks with high betas to a portfolio increases the portfolio's market risk.

   II. The higher the beta, the higher the expected return.

   III. A beta can be positive, negative, or equal to zero.

   IV. A beta of 0.5 indicates a lower level of risk than a beta of -1.5.

   		I, II, III and IV
   		II, III and IV only
   		I and IV only
   		II and III only