Hi, I want some assistance responding to the given questions:
Question 1: Why are investors risk-averse? How can investors deal with different degrees of risk?
Question 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?
Question 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?