Which of the following statements regarding investment risk is correct? 1.beta is a measure of systematic, non-diversifiable risk. 2.rational investors will form portfolios and eliminate systematic risk. 3.rational investors will form portfolios and eliminate unsystematic risk. 4.systematic risk is the relevant risk for a well-diversified portfolio. 5. beta captures all the risk inherent in an individual security.

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.