Statements is true regarding systematic risk

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Reference no: EM131982830

1. Which of the following statements is true regarding systematic risk?

It decreases as the number of randomly selected securities in a portfolio increases.

It increases as the number of randomly selected securities in a portfolio increases.

It remains constant as the number of randomly selected securities in a portfolio increases.

None of the above

2. Oscar Inc.'s beta is 1.35. The returns on the market portfolio and treasury bills are 12% and 3%, respectively. Find the required return on Oscar Inc.'s stock.

.1920

.1515

.1215

.1620

Reference no: EM131982830

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