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