You are considering purchasing stock S. This stock has an expected return of 8% if the economy booms and 3% if the economy goes into a recessionary period. The overall expected rate of return on this stock will:

Risk that affects a large number of assets, each to a greater or lesser degree, is called _____ risk.

The standard deviation of a portfolio will tend to increase when:

The beta of a security is calculated by dividing the:

The _____ tells us that the expected return on a risky asset depends only on that asset's nondiversifiable risk.