11) An investor will get maximum risk reduction by combining assets that are A) positively...
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11) An investor will get maximum risk reduction by combining assets that are A) positively correlated. B) negatively correlated. C) uncorrelated. D) perfectly, positively correlated. 12) You are considering buying some stock in Continental Grain. Which of the following is an example of nondiversifiable risk? A) Risk resulting from an impending lawsuit against Continental B) Risk resulting from a news release that several of Continental's grain silos were tainted C) Risk resulting from an explosion in a grain elevator owned by Continental D) Risk resulting from a general decline in the stock market 13) The capital asset pricing model A) measures risk as the correlation coefficient between a security and market rates of return. B) provides a risk-return trade-off in which risk is measured in terms of beta. C) depicts the total risk of a security. D) provides a risk-return trade-off in which risk is measured in terms of the market returns
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