32.What is the notional amount of your swap contract per year? (a)477,918,195EUR (b)35,170,000EUR (c)2,588,160EUR (d)0.7359EUR Answer:(b) 33.Who might take the opposite side of this swap contract? (a)Another U.S.company with sales in Germany (b)A German company with sales in the U.S. (c)Another European company with worldwide sales (d)Another U.S.company with worldwide sales Answer:(b) 34.The diversification principle states that by diversifying across risky assets people can sometimes achieve a(n) in their overall risk exposure with in their expected return. (a)increase;no decrease (b)increase;a minimal decrease (c)decrease;a minimal increase (d)decrease:no decrease Answer:(d) 35.The part of portfolio volatility that remains no matter how many stocks are added is (a)diversifiable risk (b)nondiversifiable risk (c)correlated risk (d)uncorrelated risk Answer:(b) 11-911-9 32. What is the notional amount of your swap contract per year? (a) 477,918,195 EUR (b) 35,170,000 EUR (c) 2,588,160 EUR (d) 0.7359 EUR Answer: (b) 33. Who might take the opposite side of this swap contract? (a) Another U.S. company with sales in Germany (b) A German company with sales in the U.S. (c) Another European company with worldwide sales (d) Another U.S. company with worldwide sales Answer: (b) 34. The diversification principle states that by diversifying across risky assets people can sometimes achieve a(n) ________ in their overall risk exposure with ________ in their expected return. (a) increase; no decrease (b) increase; a minimal decrease (c) decrease; a minimal increase (d) decrease; no decrease Answer: (d) 35. The part of portfolio volatility that remains no matter how many stocks are added is ________. (a) diversifiable risk (b) nondiversifiable risk (c) correlated risk (d) uncorrelated risk Answer: (b)