Which of the following statements regarding investment risk are correct?   1. Rational investors will form portfolios and eliminate systematic risk. 2. Beta is a measure of systematic, non-diversifiable risk. 3. Rational investors will form portfolios and eliminate unsystematic risk. 4. Systematic risk is the relevant risk for a well-diversified portfolio. 5. Beta captures all the risk inherent in an individual security.

Tom is interested in purchasing a personal liability umbrella policy (PLUP). He has asked you to educate him on this type of policy. Which of the following is true?

1.7 What do we use search engines for? (1)

1.4 What is it called when we break down a problem into smaller parts? (1)

Which of the following terms is defined as: the possibility of loss, but no possibility of gain?

3.1 What is a citation? How does it work?   (2)

SECTION B: PRACTICAL                                                                                                             QUESTION 2:    Download the document by clicking on the blue button, make the necessary changes, and upload when finished.     

If the risk/return performance of a stock lies below the Security Market Line, the stock is said to have a:

SECTION B: PRACTICAL QUESTION 1:   Download the document by clicking on the blue button, make the necessary changes, and upload when finished.     

QUESTION 4: Fill in the answer in the blank space below.