Problem
1. Compare the diversifiable and nondiversifiable risks. How would each of them be measured? What is portfolio risk, CAPM, and market beta?
2. What is the managerial decision tree? Can you come up with your own example to illustrate how the decision tree works? Explain how mathematical simulation works to serve business decisions.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.