1. Which of the following is true regarding the euro?
a. ?All of the above are true.
b. ?It allows for more consistent economic conditions across countries.
c. ?It prevents each country from conducting its own monetary policy.
d. ?Exchange rate risk between participating European currencies is completely eliminated, encouraging more trade and capital flows across European borders.
2. Which one of these statements related to beta is correct?
A stock with a high standard deviation will also have a high beta.
The beta of a risk-free security is set at 1.
Beta measures the total risk of a single security whether held independently or as part of a portfolio.
Beta measures the risk of a single security if held in a large, diversified portfolio.
The higher the beta, the lower the risk of a security.