(2) How does the riskiness of this portfolio compare to the riskiness of the individual stocks if held in isolation?

(2) How does the riskiness of this portfolio compare to the riskiness of the individual stocks if held in isolation? H. Explain what happens to the risk and expected return on a portfolio constructed from randomly picked stocks if we start with a 1-stock portfolio and add more and more stocks. I. How are risk and return related under the CAPM? Specifically, how is beta calculated and how are required rates of return determined? Web Chapter 29 Basic Financial Tools: A Review These required returns compare with the stocks” expected returns? J. Explain why the price of a share of stock is calculated as the present value of its expected future dividends, using a time line to help with your explanation. K. One of Susan”s clients has just inherited some stock of a company named Bon Temps, and he asked her to evaluate the stock for him.

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