FIN 3331 MANAGERIAL FINANCE HOMEWORK: Risk and Return- Troy University
o According to the video, how do we define risk? Question
o According to the video, how would the risk of a portfolio consisting of stocks from a variety of economic sectors compare to one consisting of stocks from just one sector? What is the technical finance term for this concept? Question
o According to the video, what is the difference between std. dev. and beta in terms of measuring risk? Question
o According to the video, what are some caveats associated with CAPM? Question
o According to the video, what is the difference between systematic and unsystematic risk? How is each type of risk impacted by holding a well-diversified portfolio?
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.