1. As the number of stocks in a portfolio is increased:
[a] Unique risk decreases and approaches to zero
[b] Market risk decreases
[c] Unique risk decreases and becomes equal to market risk
[d] Total risk approaches to zero
2. A statistical measure of the degree to which securities' returns move together is called:
[a] Variance
[b] Correlation Coefficient
[c] Standard Deviation
[d] None of the above
3. When calculating the expected return on a portfolio of stocks the portfolio weights are based on the:
[a] number of shares owned in each stock.
[b] price per share of each stock.
[c] market value of the total shares held in each stock.
[d] original amount invested in each stock.
[e] cost per share of each stock held.