Define the risk in general-stand-alone risk

Reference no: EM133196566

Assignment:

Prepare a PowerPoint Presentation to define the following terms, using graphs or equations to illustrate your answers where feasible.

Risk in general; stand-alone risk; probability distribution and its relation to risk

Expected rate of return, ^r

Continuous probability distribution

Standard deviation, ?; variance, ?2

Risk aversion; realized rate of return, r

Risk premium for Stock i, RPi; market risk premium, RPM

Capital Asset Pricing Model (CAPM)

Expected return on a portfolio, r^p; market portfolio

Correlation as a concept; correlation coefficient,?

Market risk; diversifiable risk; relevant risk

Beta coefficient, b; average stock's beta

Security Market Line (SML); SML equation

Slope of SML and its relationship to risk aversion

Equilibrium; Efficient Markets Hypothesis (EMH); three forms of EMH

Fama-French three-factor model

Behavioral finance; herding; anchoring

Reference no: EM133196566

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