Explain the three different kinds of loan payment methods

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Describe the three different types of loan payment methods and discuss the advantages, disadvantages and potential uses of each one. Describe diversification and what it tries to accomplish for a portfolio. Also discuss the role of correlation with risk and return within this context. Discuss the major assumptions behind SML and beta. How do these measures help in building a diversified portfolio of investments that maximizes return and minimizes risks?

Reference no: EM13475948

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