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  • A rational investor will invest in a risky stock if: #131
  • The standard deviation of a portfolio: #132
  • Risk of two securities having different expected return can be compared with: #133
  • To achieve maximum diversification in a two-asset portfolio, investors should choose stocks with correlation of: #134
  • This type of risk is avoidable through proper diversification: #135
  • Which one of the following is considered an example of systematic risk? #136
  • Beta is a measure of security responsiveness to... #137
  • The risk-free security has a beta equal to …, while the market portfolio’s beta is equal to… #138
  • The revenue recognition principle dictates that revenue should be recognized in the accounting records: #139
  • According to the Capital Asset Pricing Model, a security’s expected (required return) is equal to the risk free rate plus a premium #140
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