1. What is insider trading? a) A HIGHLY ILLEGAL AND UNETHICAL METHOD OF TRADING STOCKS b) A TRANSACTION THAT INVOLVES PRIVATE KNOWLEDGE ABOUT A COMPANY AND ITS STOCKS AND SECURITIES c) A TRANSACTION THAT ALWAYS VIOLATES FIDUCIARY RESPONSIBILITY 2. What happens when an investor over-diversifies? a) THE PORTFOLIO HAS MANY SMALL INVESTMENTS AND HAS DIFFICULTY BEATING THE MARKET b) HIS PORTFOLIO NEVER BEATS THE S&P500 c) HIS PORTFOLIO BECOMES VERY VOLATILE d) THEY CREATE HIGH-RISK SCENARIOS