Statements concerning risk are correct

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1. Which of the following statements concerning risk are correct?

I. Non-diversifiable risk is measured by beta

II. The risk premium increases as diversifiable risk increases

III. Systematic risk is another name for non-diversifiable risk

IV. Diversifiable risks are market risks you cannot avoid

2. A fully amortizing mortgage loan is made for $100,000 at 6 percent interest for 30 years. Determine payments for each of the periods a–d below if interest is accured:

a. Monthly.

b. Quarterly.

c. Annually.

d. Weekly.

Reference no: EM132025193

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