How can investors deal with different degrees of risk

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Reference no: EM13762879

Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.

1. Why are investors risk-averse? How can investors deal with different degrees of risk?

2. What is the expected return on a portfolio? How can the expected return on a portfolio be manipulated to minimize the risk on that portfolio?

3. What is the beta coefficient for a firm? What does it tell us about the firm? Why do similar firms have different beta coefficients?

Reference no: EM13762879

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