1.1 Differentiate and clearly explain the concepts of non-diversifiable and diversifiable risk. Support your answer with relevant and explanatory examples.

1.2 Calculate the beta coefficient of a stock, assuming that the risk-free rate is 3%, risk premium is 2% and expected return of the stock is 6%.

1.3 Critically assess the relevance and efficacy of the CAPM model in the current ever-changing and disruptive market.