Which statement is false regarding risk and return? a. For broad asset classes, the relationship between risk and return is nearly linear. b. Adding multiple shares to a portfolio can reduce non-systematic risk. C. There is a nearly linear relationship between risk and return for individual shares. d. Because investors can easily eliminate risk through diversification, investors should only be rewarded for non-diversifiable risk. If we are able to eliminate all of the unsystematic risk in a portfolio then, what is the result? a. A risk-free portfolio b. A portfolio that contains only systematic risk C. A portfolio that has an expected return of zero d. Such a portfolio cannot be constructed; there is always unsystematic risk in any portfolio Stock Y has a beta of 1.3 and Stock Z has a beta of 0.7. Which statement is correct about these assets? a. Stock Y is more volatile than Stock Z. b. Stock Y has a higher expected return than Stock Z. C. Stock Y has higher unsystematic risk than Stock Z. d. Stock Y is less volatile than Stock Z. The IRR method assumes that the reinvestment rate of cash flows is: a. the cost of capital b. the IRR C. essentially arbitrary d. zero