1. 1. Contrast open-end mutual funds with closed-end funds and unit investment trusts.
2. 2. Describe risk premium and risk aversion.
3. 3 How is the expected rate of return of a portfolio calculated?
4. 4. What are some differences between hedge funds and mutual funds?
5. 5. Explain the concept of risk-free assets.
6. 6. When adding a risky asset to a portfolio of many risky assets, which property of the asset is more important, its standard deviation or its covariance with the other assets? Explain.