1. and 2. you define

The rest you follow what is written.

1. Nalive Diversification 2. Simple (Sector/Industry) Diversification 3. Markowitz Diversification a. How do the Markowitz Diversification criteria differ from diversification for Nave or Simple? b. What is the difference between the Correlation Coefficient (r) and Covariance (COV)? 4. The Markowitz Technique Applied to Portfolio Construction a. Define what is meant by an Efficient Portfolio. b. What approaches are used to determine Efficient Portfolios? c. Explain the concept of the Efficient Frontier. d. What determines where an investor selects an Efficient Portfolio? 5. William Sharpe and Portfolio Theory a. How does the Sharpe Model differ from Markowitz's Model? b. What does Sharpe mean by Portfolio "M"? c. What does Sharpe mean by a Lending Portfolio? d. What does Sharpe mean by a Borrowing Portfolio? e. How does an Investor determine the optimal Portfolio? 6. Explain what is meant by Portfolio Theory. 7. Explain what is meant by Capital Market Theory. 8. Portfolio Models and Real World Applications