1. Susan owns investments spread across several countries and in many different industries. When evaluating her portfolio's risk she can use the portfolio weighted average of the assets':
Risk ratio
Standard deviation
Beta
Price-earnings ratio
Reward ratio
2. Pierre is trying to maximize his expected return by taking on the most risk possible. Which of the following investments should earn the highest risk premium?
Diversified portfolio like the S&P 500.
Portfolio that has a beta of 1.20.
Bond with a beta of 0.74.
Stock with a beta of 1.38.
U.S. Treasury bill.