1. Which of the following statements concerning risk are correct?
I. Non-diversifiable risk is measured by beta
II. The risk premium increases as diversifiable risk increases
III. Systematic risk is another name for non-diversifiable risk
IV. Diversifiable risks are market risks you cannot avoid
2. A fully amortizing mortgage loan is made for $100,000 at 6 percent interest for 30 years. Determine payments for each of the periods a–d below if interest is accured:
a. Monthly.
b. Quarterly.
c. Annually.
d. Weekly.